Daio Paper Corporation
3880・Prime Market・Pulp & Paper
Paper & Paperboard
Core business of Daio Paper manufacturing and selling Newsprint, Printing Paper, Packaging Paper & Functional Materials, paperboard, corrugated cardboard, etc.
| Period | Current | Previous | Change |
|---|---|---|---|
| Sales revenue (external customers) | ¥350,283 million | ¥354,176 million | ↓ |
| Segment profit | ¥14,073 million | ¥8,979 million | ↑ |
| Segment assets | ¥405,028 million | ¥421,901 million | ↓ |
| Depreciation and amortization | ¥23,319 million | ¥22,091 million | ↑ |
| Increase in property, plant and equipment and intangible assets | ¥15,206 million | ¥28,150 million | ↓ |
Business Details
Manufactures and sells Newsprint, Printing Paper, Packaging Paper & Functional Materials, paperboard, corrugated cardboard, Pulp, and other products. Manufacturing is handled by the Company along with Iwaki Daio Paper, Otsu Paperboard, Daio Paper Techno, and others, while sales are handled by the Company and EBS. While structural contraction in domestic demand (due to digitalization and the declining birthrate) continues, growing demand for plastic reduction/elimination and expanding export sales are providing support for some product categories. Under the 5th Medium-Term Management Plan, the policy is to secure stable earnings while promoting a shift toward the packaging field.
Recent Overview
Although sales revenue decreased 1.1% year on year, segment profit increased significantly by 56.7% due to improved energy costs and other factors
In the Paper & Paperboard business for FY2026 (ending March 2026), sales revenue was ¥350,283 million (down 1.1% year on year), while segment profit achieved a substantial increase of 56.7% year on year to ¥14,073 million. The main driver was improved energy costs resulting from the restart of the boiler at Iwaki Daio Paper. Newsprint saw increased sales in both volume and value due to changes in the competitive environment. Printing Paper fell below the prior period in both volume and value due to demand decline despite the penetration of price revisions. Paperboard & Corrugated Cardboard saw sales revenue exceed the prior period due to increased exports. Impairment losses in the Paper & Paperboard business remained at ¥170 million (versus ¥6 million in the prior period).
Key Products
Growth Drivers
- Increased sales of Newsprint due to changes in the competitive environment (both sales volume and revenue exceeded the prior period)
- Expanding demand for e-commerce delivery packaging products and environmentally-conscious products (plastic reduction/elimination trend)
- Rising unit sales prices due to the penetration of price revisions in Printing Paper and Packaging Paper
- Increased export sales of Paperboard & Corrugated Cardboard to China and Southeast Asia
- Improved energy costs from the restart of the boiler at Iwaki Daio Paper
- Expansion into new materials businesses such as CNF composite resin
- Cost structure reform through the strategic business alliance with Hokuetsu Corporation
Risks
- Structural decline in demand for graphic paper such as Newsprint and Printing Paper (digitalization and the entrenchment of online advertising)
- Cost pressure from raw material and fuel prices (waste paper, chemicals, etc.) remaining elevated
- Continued weakness in domestic corrugated cardboard demand (sluggish personal consumption due to rising prices)
- Decline in export sales of packaging paper to China
- Rising fixed manufacturing costs such as repair costs and labor costs, and surging logistics costs
- Long-term contraction of domestic paper demand due to the declining birthrate and population decline
- Risk of surging raw material and fuel prices and material costs due to factors such as the situation in the Middle East
Last updated: June 25, 2026