Nippon Paper Industries Co (3863) Q3 2025 earnings summary

Executive summary

• Net sales for Q1–Q3 FY2025/3 rose 1.3% year-over-year to ¥886.3 billion, driven by growth in household paper, healthcare products, and chemicals, offsetting lower graphic paper demand.

• Operating income increased 19.2% year-over-year to ¥11.1 billion, supported by strong domestic daily-life products and energy businesses.

• Ordinary income surged 68.4% year-over-year to ¥12.8 billion.

• Net income improved significantly, reaching ¥8.4 billion in Q3 after a loss in Q1, with cumulative net income of ¥0.1 billion for Q1–Q3 and profit attributable to owners of parent at ¥57 million.

Financial highlights

• Gross profit improved to ¥139.7 billion from ¥131.3 billion year-over-year.

• Operating income margin increased, with operating income at ¥11.1 billion versus ¥9.3 billion last year.

• Net income per share was ¥0.50, compared to a loss of ¥71.89 per share in the previous year.

• Comprehensive income was ¥3.0 billion, down from ¥24.6 billion year-over-year.

• Capital expenditure for Q1–Q3 FY2025/3 was ¥58.1 billion; depreciation at ¥58.7 billion.

Outlook and guidance

• FY2025/3 full-year net sales forecast is ¥1,200.0 billion, up 2.8% year-over-year.

• Operating income is projected at ¥23.0 billion, a 33.2% increase year-over-year.

• Ordinary income forecast is ¥19.0 billion, up 30.6% year-over-year.

• Net income forecast is ¥3.0 billion, up 86.8% year-over-year due to prior year one-time gains.

• Dividend forecast is ¥10 per share for year-end, unchanged from the previous year.