Nippon Paper Industries Co., Ltd.
3863・Prime Market・Pulp & Paper
Paper & Paperboard Business
A core business of the Nippon Paper Group centered on paper, paperboard, and pulp
| Period | Current | Previous | Change |
|---|---|---|---|
| Sales (external customers) | ¥557,863 million | ¥565,911 million | ↓ |
| Operating income | ¥564 million | ¥8,268 million | ↓ |
| Segment assets | ¥640,856 million | ¥647,655 million | ↓ |
| Depreciation and amortization | ¥24,171 million | ¥25,217 million | ↓ |
| Increase in tangible and intangible fixed assets | ¥24,576 million | ¥24,033 million | ↑ |
Business Details
This segment manufactures and sells Paper (Newsprint & Printing/Information Paper), Paperboard, Specialty Paper, and Pulp & Papermaking Raw Materials. The Company itself handles core manufacturing and sales, while Nippon Paper Trading Co., Ltd. and others handle procurement and sales, and Jujo Thermal Ltd. handles thermal paper and other products for Europe. It is the Group's largest segment, accounting for approximately 46.8% of external customer sales, but production system restructuring is underway in response to the structural decline in demand for graphic paper. The segment aims to maintain profitability through ongoing cost reductions and price revisions.
Recent Overview
Operating income plunged 93.2% year-on-year due to a combination of deteriorating export market conditions and rising domestic costs
In the Paper & Paperboard Business for FY2026 (ending March 2026), sales were ¥557,863 million (down 1.4% year-on-year) and operating income was ¥564 million (down 93.2% year-on-year), representing a substantial decline in profit. Domestic paper sales volume exceeded the previous fiscal year due to other companies' withdrawal from the business, but export sales volume of paper fell below the previous fiscal year due to deteriorating market conditions. In addition, in response to the continued rise in labor and logistics costs, the Company worked on cost improvements and price revisions, but was unable to fully absorb the cost increases, resulting in a substantial decline in operating income.
Key Products
Growth Drivers
- Support effect on domestic paper sales volume from other companies' withdrawal from the business
- Improved productivity and reduced fixed costs through production system restructuring (paper machine shutdowns)
- Price revisions for various products implemented in FY2025 are expected to contribute over the full year in the next fiscal year
- Continued pursuit of cost improvements and cost reductions
- Improved cost structure through equipment rationalization linked to GHG emission reductions
Risks
- Continuing structural decline in demand for newsprint and printing/information paper
- Downward pressure on sales volume and prices due to deteriorating export market conditions for paper and paperboard
- Cost increases due to rising raw material/fuel prices, labor costs, and logistics costs (including the risk of raw material/fuel prices remaining elevated due to the situation in the Middle East)
- Risk of additional impairment losses associated with production system restructuring
- Risk of deteriorating export profitability due to yen appreciation
- Risk of delayed profit recovery due to time lag in the penetration of price revisions
Last updated: June 25, 2026