NAKAMOTO PACKS CO.,LTD.

Business Details

The Group consists of the single segment of Printing-related Business. Products manufactured through gravure printing, coating processing, laminating processing, and molding processing are deployed across Food-related Packaging Materials (approx. 65% of Q1 sales composition), IT & Industrial Materials-related Products (approx. 18%), Daily Living Materials-related Products (approx. 8%), Building Materials-related Products, Medical & Pharmaceutical-related Products, and others. The Group operates domestic and overseas production sites and seven overseas consolidated subsidiaries (China, the U.S., and Vietnam), and is pursuing differentiation through proprietary developed products and expanding sales of environmentally friendly products.

Recent Overview

In Q1 of FY2027 (ending March 2027), net sales, operating profit, and ordinary profit all reached record highs for a first quarter

In Q1 of FY2027 (ending March 2027) (March to May 2026), net sales were ¥12,767 million (up 3.6% year on year), operating profit was ¥799 million (up 6.6% year on year), and ordinary profit was ¥820 million (up 17.8% year on year), achieving record first-quarter highs across all three indicators. The significant increase in ordinary profit was attributable to the disappearance of the ¥59 million foreign exchange loss recorded in the same period of the prior year, which turned into a foreign exchange gain of ¥11 million. On the other hand, net profit attributable to owners of parent declined slightly to ¥542 million (down 2.2% year on year), due to the reversal effect of extraordinary income of ¥149 million recorded in the same period of the prior year, comprising a gain on sale of fixed assets of ¥104 million and a gain on sale of investment securities of ¥44 million. Building Materials-related Products (up 35.8% year on year in sales) and IT & Industrial Materials-related Products (up 4.4% year on year) drove performance, while Daily Living Materials-related Products and Medical & Pharmaceutical-related Products declined. There is no change to the full-year earnings forecast, and the annual dividend forecast of ¥74.00 (up ¥3.00 year on year) remains unchanged.

Key Products

Growth Drivers

• Expanding demand for smartphone applications and semiconductor-related uses in IT & Industrial Materials-related Products (Q1 gross profit up 23.3% year on year)
• Increase in wallpaper printing and surface functional coating products in Building Materials-related Products, along with new project orders (Q1 sales up 35.8% year on year)
• Steady performance in Food-related Packaging Materials for dairy products, agricultural food packs, processed seafood, frozen food, and processed meat products (Q1 sales up 4.7% year on year)
• Expanded sales of developed products that reduce environmental impact (continuing under the slogan of promoting environmental management and improvement activities)
• Improvement in operating profit margin through cost reduction, production efficiency gains, and quality improvement (Q1 operating profit margin of 6.3%, improved from 6.1% in the same period of the prior year)
• Continued capital investment aimed at expanding production capacity (Q1 tangible fixed assets increased by ¥511 million)

Risks

• Rising manufacturing costs due to soaring raw material and energy costs including ink, solvents, electricity, fuel, and auxiliary materials (cost of sales of ¥10,420 million, up 3.3% year on year)
• Deterioration of the export environment and geopolitical risk due to trends in U.S. trade and tariff policy (China, U.S., and Vietnam sites)
• Sluggish demand in Daily Living Materials-related Products (Q1 sales down 6.0% year on year, gross profit down 9.8% year on year)
• Decline in sales of Medical & Pharmaceutical-related Products (Q1 sales down 20.1% year on year, gross profit down 25.5% year on year)
• Foreign exchange fluctuation risk (the Group holds seven overseas consolidated subsidiaries and operates businesses in China, the U.S., and Vietnam)
• Long-term decline in domestic demand for Food-related Packaging Materials and Daily Living Materials-related Products due to the declining birthrate and aging population
• Current ROE level remains below the medium-term management plan target of 13.0% or higher