Oji Holdings (3861) Q3 2026 earnings summary

Executive summary

• Net sales increased 0.7% year-over-year to ¥1,393.0 billion, supported by the Walki Holding Oy acquisition despite overseas pulp market decline.

• Operating profit dropped 53.2% to ¥26.7 billion, and ordinary profit fell 63.9% to ¥22.7 billion, mainly due to lower domestic sales volumes, higher costs, and increased interest expenses.

• Profit attributable to owners decreased 38.5% to ¥31.0 billion, impacted by restructuring expenses and lower ordinary profit, despite asset sale gains.

• Comprehensive income fell sharply to ¥0.4 billion from ¥47.0 billion year-over-year, mainly due to foreign currency translation losses.

Financial highlights

• Net sales: ¥1,393.0 billion (+0.7% YoY); Operating profit: ¥26.7 billion (–53.2% YoY); Ordinary profit: ¥22.7 billion (–63.9% YoY); Profit attributable to owners: ¥31.0 billion (–38.5% YoY).

• EPS for the period was ¥33.81, down from ¥51.32 in the prior year.

• Gross margin declined as cost of sales increased to ¥1,150.8 billion from ¥1,118.7 billion YoY.

• Depreciation increased by ¥3.9 billion to ¥67.1 billion.

• Extraordinary gains included ¥25.3 billion from sale of investment securities and ¥9.5 billion from return of assets from retirement benefits trust.

Outlook and guidance

• Full-year forecast maintained: Net sales ¥1,850.0 billion, operating profit ¥45.0 billion (–33.5% YoY), ordinary profit ¥35.0 billion (–49.0% YoY), profit attributable to owners ¥50.0 billion (+8.3% YoY), EPS ¥54.25.

• No change in dividend forecast; annual dividend expected at ¥36.00 per share.

• Medium-term plan targets operating profit of ¥120 billion, net profit of ¥80 billion, and ROE of 8% by FY2027.