ENVALITH
古林紙工株式会社 logo

FURUBAYASHI SHIKO CO.,LTD.

3944・Standard Market・Pulp & Paper

Official website
古林紙工株式会社 logo
FURUBAYASHI SHIKO CO.,LTD.3944

Business

Furubayashi Shiko Co., Ltd. is a specialty packaging manufacturer founded in 1934, with its core businesses being the manufacture and sale of Printed Paper Containers (Cartons) and Plastic Packaging Materials. Domestically, the company operates plants in Fujiidera, Totsuka, Inuyama, Kyushu, Wakayama, and Takino, and has consolidated subsidiaries overseas in Taiwan and Shanghai, China. Its major customers are large consumer goods manufacturers such as Kao (14.1% of net sales), Rengo Riverwood Packaging (11.8%), and Ajinomoto (11.0%), and it primarily supplies cartons for confectionery, food, soap and detergent, and daily sundry goods. Consolidated net sales for FY2025 (ending March 2025) were ¥17,865 million, of which Printed Paper Containers accounted for ¥16,299 million and Plastic Packaging Materials for ¥1,388 million. The company is listed on the Standard Market of the Tokyo Stock Exchange.

Business Model

Trading terms and quality standards are clarified through individual contracts with customers, and Printed Paper Containers and Plastic Packaging Materials are manufactured and delivered on a made-to-order basis. The company has a mechanism to pass on increases in raw material prices and manufacturing costs through price revision negotiations. The design and engineering department is responsible for proposing added value, and the company aims for an earnings structure in which it is valued by customers not merely as a manufacturing subcontractor but as a specialized packaging technology partner.

Company Strengths

The company has established ongoing transactions based on individual contracts with Kao (14.1% of net sales), Rengo Riverwood Packaging (11.8%), and Ajinomoto (11.0%). The top three customers together account for approximately 37% of net sales, with orders received up 2.7% year on year and the order backlog up 12.2% year on year, confirming resilient demand.

Since its founding in 1934, the company has accumulated expertise as a specialist in Printed Paper Containers. It has obtained ISO9001, ISO14001, and FSC CoC certifications, meeting quality and environmental standards both in Japan and overseas. In 1962, it introduced Japan's first Bobst Autoplaten die-cutting machine, giving it a technological standing as an industry pioneer.

The renewal of the production system associated with capital investment carried out in the previous fiscal year has been completed, and Japan Segment profit for FY2025 reached ¥626 million (up 442.5% year on year). The disappearance of one-time cost burdens and improved production efficiency contributed simultaneously, expanding EBITDA to ¥1,199 million (up 13.7% year on year).

ENVALITH's Perspective

In Q1 of FY2026 (ending December 2026), the China Segment fell into a segment loss of ¥59 million (versus a segment profit of ¥45 million in the same quarter of the previous year). The decline in order volume from existing customers has continued, and despite ongoing efforts to curb fixed costs, profitability has not improved. External factors such as weak personal consumption in China, a sluggish real estate market, and deflationary pressure are acting as headwinds, and it appears difficult to escape the structurally loss-making profile without acquiring new customers. Early recovery in China is essential to achieving the full-year earnings forecast (operating profit of ¥350 million), and progress needs to be monitored closely.

The Japan Segment achieved a significant improvement in segment profit, up 23.3% year on year, driven by price increases and a review of the production structure. However, external customer sales came to ¥3,659 million, down 0.6% year on year, and order volume growth remains sluggish. While the improvement in profitability is commendable, there are limits to expanding the absolute level of profit without sales growth. Against the full-year FY2026 (ending December 2026) sales forecast of ¥18,500 million (up 3.6% year on year), the Q1 progress rate was a low 22.9%, reflecting a plan structure heavily weighted toward the second half.

Operating profit for Q1 of FY2026 (ending December 2026) was ¥79 million, representing a progress rate of 22.6% against the full-year forecast of ¥350 million. This marks a significant decline of 55.5% year on year, mainly due to the loss in the China Segment and an increase in administrative expenses (with the adjustment amount expanding from ¥34 million in the same quarter of the previous year to ¥68 million). While the company has maintained its full-year earnings forecast, it needs to accumulate ¥271 million in operating profit over the remaining three quarters, which is premised on a recovery in orders in China and the continuation of the price increase effect in Japan. External factors such as rising interest rates, geopolitical risk, and exchange rate fluctuations also remain sources of uncertainty.

Growth Strategy

Aiming for sustainable growth through smart factory conversion of domestic production facilities and expansion of high-value-added orders

Continuing price revision negotiations with customers against a backdrop of rising raw material and labor costs, while reviewing the production system to improve profitability in the Japan Segment. Segment profit increased 23.3% in Q1 of FY2026 (ending December 2026), with the effects of profitability improvement becoming evident.

Amid a continued decline in order volume from existing customers, the company aims to restore profitability by promoting the acquisition of new customers and new orders while continuously curbing fixed costs. In Q1 of FY2026 (ending December 2026), the segment loss widened to ¥59 million, and recovery has not yet been achieved.

The company aims to acquire new demand driven by growing environmental awareness by developing and promoting SDGs-compliant products, such as resource-saving and easily disposable packaging and the use of forest-certified paper. It has established an environmental policy that places ESG at the core of management and continues to pursue these initiatives.

Last updated: July 17, 2026