Nippon Paper Industries Co (3863) Q1 2027 earnings summary

Executive summary

• Net sales rose 7.5% year-on-year to ¥314.5 billion, driven by new consolidated subsidiaries and favorable foreign exchange from yen depreciation.

• Operating profit declined 47% year-on-year to ¥2.9 billion, as domestic profit growth was offset by overseas declines, particularly at Opal and NDP.

• Ordinary profit dropped 54.8% year-on-year to ¥2.5 billion.

• Net income swung from a ¥1.9 billion profit to a ¥0.2 billion loss year-on-year.

• Comprehensive income turned positive at ¥10.3 billion, reversing a prior-year loss.

Financial highlights

• Gross profit was stable at ¥49.1 billion, nearly unchanged from the previous year.

• Total assets increased to ¥1,759.3 billion from ¥1,738.5 billion at March 31, 2026.

• Equity-to-asset ratio was 29.3% as of June 30, 2026.

• Basic earnings per share was negative at ¥(2.02), down from ¥16.50 a year earlier.

• Net assets increased to ¥547.6 billion from ¥540.5 billion at March 31, 2026.

Outlook and guidance

• Full-year financial forecast for FY2027/3 has been withdrawn and is now undetermined due to uncertainties from a tank collapse at NDP and earthquake damage at Yatsushiro Mill.

• Updated guidance will be provided once the financial impact can be reasonably estimated.

• Dividend forecast for FY2027 is ¥15.00 per share, unchanged from the previous year.