Oji Holdings (3861) Q2 2027 earnings summary

Executive summary

• H1 FY2026 net sales rose 4.7% YoY to ¥958.0bn; operating profit fell 7.2% to ¥15.5bn, while ordinary profit reached ¥11.5bn and attributable net income ¥11.7bn.

• Domestic price revisions and overseas consolidation lifted sales, but input-cost inflation and weaker pulp conditions weighed on operating profit and the full-year outlook.

• FY2026 operating-profit guidance was cut to ¥45.0bn; net-income guidance and the ¥36 annual dividend forecast were maintained.

Financial highlights

• H1 net sales were ¥957,962m versus ¥914,984m; gross profit was ¥162,482m versus ¥157,964m, and operating profit was ¥15,533m versus ¥16,731m.

• Ordinary profit rose to ¥11,496m from ¥8,787m; attributable net income increased to ¥11,747m from ¥10,920m, and EPS was ¥13.74 versus ¥11.85.

• Price revisions added ¥26.0bn to H1 operating profit; raw materials and fuels reduced it by ¥15.0bn, foreign exchange by ¥5.3bn, and other costs by ¥5.7bn.

• Domestic operating profit increased ¥1.8bn to ¥19.9bn; overseas operating loss widened ¥3.0bn to ¥4.4bn.

• Comprehensive income was ¥32,007m versus a loss of ¥41,842m; H1 gains included ¥10,837m from investment securities sales and ¥3,218m from non-current asset sales.

Outlook and guidance

• FY2026 forecast: net sales ¥1,960.0bn, operating profit ¥45.0bn, ordinary profit ¥30.0bn, attributable net income ¥35.0bn and EPS ¥40.94.

• Operating and ordinary profit forecasts each fell ¥15.0bn versus prior guidance; sales rose ¥20.0bn, while net-income guidance remained unchanged.

• H2 operating profit is forecast at ¥29.5bn versus H1 actual of ¥15.5bn, supported by domestic price increases and more operating days, partly offset by Middle East-related costs.

• FY2027 management-plan targets remain operating profit of ¥120bn, attributable net income of ¥80bn and ROE of 8%.