Rengo Co., Ltd.
3941・Prime Market・Pulp & Paper
Flexible Packaging Business
High-growth GPI Rengo segment engaged in the domestic manufacture and sale of flexible packaging products and cellophane
| Period | Current | Previous | Change |
|---|---|---|---|
| Net sales (full year, FY2026 (ending March 2026)) | ¥191,529 million | ¥181,614 million | ↑ |
| Operating profit (full year, FY2026 (ending March 2026)) | ¥9,372 million | ¥5,062 million | ↑ |
| Segment assets (end of FY2026 (ending March 2026)) | ¥186,389 million | ¥171,494 million | ↑ |
| Depreciation (full year, FY2026 (ending March 2026)) | ¥6,859 million | ¥7,148 million | ↓ |
| Increase in property, plant and equipment and intangible assets (FY2026 (ending March 2026)) | ¥10,861 million | ¥8,450 million | ↑ |
| Net sales, year-on-year change | 105.5% | － | ↑ |
| Operating profit, year-on-year change | 185.1% | － | ↑ |
Business Details
Centered on Howa Sangyo Co., Ltd. and RM Toseiro Co., Ltd., this segment manufactures and sells flexible packaging products and cellophane domestically. With food and daily necessities as its primary markets, although the impact of environmentally conscious reduction and lightweighting was observed, demand for food and daily necessities supported production volume, maintaining levels roughly on par with the previous year. Revisions to product prices and increased sales volume drove higher revenue and profit, with operating profit improving substantially, up 85.1% year on year.
Recent Overview
Higher revenue and profit driven by product price revisions and increased sales volume, with operating profit improving over 85% year on year
In FY2026 (ending March 2026), the Flexible Packaging Business achieved substantial growth in both revenue and profit, with net sales of ¥191,529 million (105.5% year on year) and operating profit of ¥9,372 million (185.1% year on year). Although the impact of environmentally conscious reduction and lightweighting was observed, demand for food and daily necessities supported production volume, maintaining levels roughly on par with the previous year. In addition to the effects of product price revisions, increased sales volume boosted earnings. Capital expenditure also rose to ¥10,861 million, up 28.5% year on year, reflecting active investment aimed at strengthening competitiveness.
Key Products
Growth Drivers
- Earnings improvement through product price revisions (the main factor behind the 185.1% year-on-year increase in operating profit)
- Increased sales volume driven by demand for food and daily necessities
- Expansion of business scale through the consolidation of RM Toseiro Co., Ltd. (formed through the integration of the packaging solutions business of Mitsui Chemicals Tohcello Co., Ltd. and Sun Tox Co., Ltd.)
- Strengthened competitiveness and earnings base through the provision of high-performance products and the latest capital investment (¥10,861 million in capital expenditure in FY2026 (ending March 2026))
- Resilient demand for food and daily necessities in the flexible packaging industry
Risks
- Risk of increased manufacturing costs due to rising raw material and fuel prices
- Risk of deteriorating cost structure due to rising logistics and labor costs
- Risk of declining sales volume due to the environmentally conscious trend toward reduction and lightweighting
- Risk of demand weakening due to sluggish personal consumption and continued price increases
- Risk related to goodwill and integration costs associated with the increase in consolidated subsidiaries through M&A (uncertainty regarding the integration effects of RM Toseiro Co., Ltd.)
Last updated: June 25, 2026