THE PACK CORPORATION

Business Details

A manufacturing, procurement, and sales business for paper processed products comprising four categories: Paper Bags, Paper Containers, Corrugated Cardboard, and Printing. Its main customers are in the domestic and overseas retail, food, e-commerce, and logistics markets, with operations conducted by the Company and its domestic and overseas consolidated subsidiaries. In the first quarter of FY2026 (ending March 2026), net sales were ¥17,548 million (73.0% of consolidated net sales), driven by Corrugated Cardboard, Paper Bags, and Paper Containers, while operating profit declined 7.1% year on year to ¥1,166 million due to progress in aggressive capital and human capital investment.

Recent Overview

Corrugated Cardboard drove growth with a 17.9% year-on-year increase, but profit fell 7.1% due to higher capital and human capital investment

In the first quarter of FY2026 (ending March 2026), net sales in the Paper Processed Products segment increased 3.9% year on year to ¥17,548 million. By product category, Corrugated Cardboard showed strong growth of 17.9% year on year on the back of e-commerce and takeout demand, while Paper Bags (up 1.4%) and Paper Containers (up 1.5%) also performed solidly. On the other hand, Printing declined 25.1% year on year due to the effect of the segment classification change following the merger with Nikko Printing Co., Ltd. Costs increased due to progress in aggressive capital and human capital investment, and operating profit came to only ¥1,166 million (down 7.1% year on year).

Key Products

Growth Drivers

• Corrugated Cardboard: expanding demand for e-commerce packaging and takeout/delivery applications (up 17.9% year on year in Q1 FY2026, ending March 2026)
• Paper Containers: solid sales of takeout/delivery food containers and e-commerce packaging (up 1.5% year on year)
• Paper Bags: solid domestic sales plus growth in overseas sales (up 1.4% year on year)
• New market development and quality control system建設 based on the medium-term management plan (target of ¥120.0 billion in consolidated net sales and ¥10.0 billion in operating profit for FY2030, ending December 2030)
• Strengthening of production capacity and quality infrastructure through aggressive capital investment

Risks

• Cost pressure from aggressive capital and human capital investment (Q1 FY2026, ending March 2026 segment operating profit down 7.1% year on year)
• Impact of segment classification change in the Printing category and shrinking sales scale (down 25.1% year on year)
• Continued risk of rising raw material, logistics, and energy costs
• Impact on overseas operations (US and China subsidiaries) from US tariff policy and US-China trade friction
• Downward pressure on consumer sentiment due to insufficient recovery in domestic personal consumption and geopolitical risks such as the Middle East situation
• Increasing future capital investment burden associated with the rebuilding of the Osaka and Nara plants