THE PACK CORPORATION
3950・Prime Market・Pulp & Paper
Business
The Pack Corporation is a comprehensive packaging manufacturer founded in 1952, operating three business segments: Paper Processed Products (paper bags, paper containers, corrugated cardboard, printing), Chemical Products (poly bags, Tailor Bag), and Others (PAS System for supplies, gifts, etc.). The company manufactures and sells products through a group of 10 companies, including four domestic plants and overseas subsidiaries in the U.S. and China, with the food, retail, e-commerce, and logistics industries as its main customer base. In February 2025, the company made Kopack Ishikawa Co., Ltd. a consolidated subsidiary, further expanding its production and sales base. Listed on the Prime Market of the Tokyo Stock Exchange.
Business Model
A composite model centered on in-house manufacturing and sales of Paper Processed Products and Chemical Products, supplemented by outsourcing revenue from the PAS System (comprehensive contracting for manufacturing and procurement of packaging materials through inventory management and delivery). Of net sales of ¥103,125 million, Paper Processed Products accounts for 73.5%, Chemical Products 12.9%, and Others 13.6%. The company maintains appropriate pricing through capacity expansion via capital investment and enhanced quality control, while increasing added value through environmentally friendly products and new market development.
Company Strengths
The company holds a product portfolio addressing growth markets: Corrugated Cardboard (for EC and transport applications, up 13.2% year on year), Paper Containers (for takeout, delivery, and EC use, up 4.0% year on year), and Paper Bags (growing overseas demand). It has obtained FSSC22000 certification (Tokyo and Osaka plants) for primary paper containers for food use, achieving differentiation in food safety.
As of the end of FY2025 (ending December 2025), net assets stood at ¥76,997 million against total assets of ¥104,212 million, while outstanding borrowings were a mere ¥462 million. Cash and cash equivalents totaled ¥23,551 million (up 41.4% year on year), securing ample liquidity on hand, giving the company the financial capacity to fund aggressive capital expenditure and shareholder returns from its own resources.
All four domestic plants and all business locations have obtained ISO14001 and ISO9001 certification. All sales divisions hold FSC® CoC certification (FSC® C020517), and the company continues to develop new environmentally responsive products such as the seaweed-derived oil-resistant coating "Kaisonal® Processing" and the paper-based cushioning material CC-PACK®. R&D expenditure amounted to ¥457 million (FY2025, ending December 2025).
ENVALITH's Perspective
Performance Trend
Revenue rose for five consecutive periods, from ¥80,177 million in FY2021 to ¥103,125 million in FY2025. The trend of revenue growth continued into Q1 of FY2026 (ending December 2026), with revenue of ¥24,038 million (up 4.7% year on year). Meanwhile, operating profit peaked at ¥8,009 million in FY2024 before declining to ¥7,207 million in FY2025, and continued to decline in Q1 FY2026 (ending December 2026) at ¥1,262 million (down 1.1% year on year). The main cause is cost increases associated with aggressive capital investment and investment in human resources. External factors such as persistently high raw material costs and foreign exchange losses (¥28 million this quarter) also weighed on profit. The full-year forecast anticipates a return to profit growth, with revenue of ¥106,000 million (up 2.8% year on year) and operating profit of ¥7,500 million (up 4.1% year on year), but the Q1 progress rate stood at only 16.8%.
Growth Strategy
Deepening penetration into food, EC, and distribution markets combined with facility renewal and human capital reinforcement to drive sustainable growth
With a target of consolidated net sales of ¥120.0 billion and operating profit of ¥10.0 billion for FY2030 (ending December 2030), the company is advancing new market development, quality control system building, capital investment, and human capital investment. In Q1 of FY2026 (ending December 2026), net sales increased 4.7% year-on-year, showing progress in line with the plan's direction.
Capturing expanding demand for packaging for the EC market as well as for takeout and delivery applications, Corrugated Cardboard sales reached ¥3,810 million in Q1 of FY2026 (ending December 2026), up 17.9% year-on-year. Paper Containers also performed solidly, supported by food containers and EC-related packaging, rising 1.5% year-on-year. The structural expansion of the EC market continues to function as an external tailwind.
The company is proceeding with active capital investment, including the rebuilding of the Osaka and Nara plants. Depreciation expense for the current quarter rose to ¥695 million (versus ¥687 million in the same period of the previous year), and construction in progress also increased from ¥659 million to ¥727 million. While the investment burden is weighing on short-term profits, groundwork for strengthening future competitiveness is progressing.
While expanding demand for diverse Flexible Packaging for Food is positioned as a growth driver, Q1 of FY2026 (ending December 2026) saw a decline in sales of Packaging for Sanitary Products, resulting in net sales of ¥2,992 million (down 6.3% year-on-year) and segment profit of ¥115 million (down 22.1% year-on-year). Strengthening sales in line with the focus on the food market remains a challenge.
Last updated: July 17, 2026