Nippon Paper Industries Reports Strong Profit Recovery

Nippon Paper Industries Co ( (NIJPF) ) has released its Q2 earnings. Here is a breakdown of the information Nippon Paper Industries Co presented to its investors.

Nippon Paper Industries Co., Ltd. is a leading Japanese company in the paper and pulp industry, known for its diverse range of products including paper, paperboard, and daily-life products, as well as its involvement in energy and construction-related sectors.

In its latest earnings report for the six months ended September 30, 2025, Nippon Paper Industries Co., Ltd. reported a slight increase in net sales by 0.8% year-on-year to ¥589,217 million, with a significant improvement in operating profit, which surged by 338% to ¥9,006 million, and ordinary profit, which rose by 377.5% to ¥8,547 million. The company also returned to profitability with a profit attributable to owners of the parent at ¥754 million, compared to a loss in the previous year.

Key financial highlights include a robust performance in the Daily-life Products segment, which saw a 6.5% increase in net sales and a turnaround to an operating profit of ¥2,421 million from a loss the previous year. However, the Paper and Paperboard segment experienced a decline in net sales by 3.2% and recorded an operating loss. The company’s financial position showed a slight decrease in total assets to ¥1,682,388 million and a marginal drop in the equity-to-asset ratio to 27.9%.

Looking ahead, Nippon Paper Industries has revised its forecast for the fiscal year ending March 31, 2026, with expectations of a 1.5% increase in net sales to ¥1,200,000 million and a significant rise in profit attributable to owners of the parent by 120.3% to ¥10,000 million. The company remains cautiously optimistic about its future performance, despite revising down its previous forecasts due to various market factors.