KPP GROUP HOLDINGS CO., LTD.
9274・Prime Market・Wholesale Trade
Business
KPP Group Holdings originated in 1924 as a paper wholesaling business and is now a global wholesale group comprising the Company, 111 subsidiaries, and 7 affiliated companies. In addition to selling paper, paperboard, pulp, and waste paper sourced from major paper manufacturers such as Oji Paper and Nippon Paper both domestically and overseas, the group is also engaged in packaging, visual communication, real estate leasing, and paper product processing. Operations are organized into four segments: Northeast Asia (Japan, China, etc.), Europe/Americas (centered on Antalis S.A.S.), Asia Pacific (Australia, New Zealand, Singapore, etc.), and Real Estate Leasing, with consolidated net sales reaching ¥650,368 million in FY2026 (ending March 2026).
Business Model
The company acts as an intermediary between major paper manufacturers as suppliers and customers such as printing, publishing, and manufacturing businesses as sales destinations, earning trading margins by providing functions such as logistics, inventory management, and product selection. In recent years, in addition to the Paper Business, the company has actively pursued M&A in the Packaging and Visual Communication fields, promoting a strategy to increase the revenue composition ratio of high-margin peripheral businesses. The Real Estate Leasing business (profit margin of 41.1%) also functions as a stable revenue source.
Company Strengths
The company operates 111 subsidiaries across the three poles of Northeast Asia, Europe/Americas, and Asia Pacific, recording consolidated net sales of ¥650,368 million in FY2026 (ending March 2026). With Antalis S.A.S. as the core entity in Europe and Spicers Limited in Asia Pacific, the company holds an established customer base, logistics network, and brand presence in each region, building a wide-ranging sales infrastructure that is difficult for competitors to replicate in a short period.
Following the acquisitions of Spicers Limited in 2019 and Antalis S.A.S. in 2020, the company went on to acquire Signet Pty Ltd in 2024, and Club Groupe, Fortuna Digital Holding, Texo Group, and others in FY2025 (ending March 2025). Post-M&A earnings contributions have been confirmed in each segment, directly boosting gross profit in the Visual Communication Business.
The Real Estate Leasing business, which utilizes company-owned real estate in Tokyo, achieved net sales of ¥1,521 million, segment profit of ¥625 million, and a profit margin of 41.1% in FY2026 (ending March 2026). Occupancy rates were maintained against a backdrop of stable office demand, and cost control led to a year-on-year profit increase. In March 2026, the company resolved to acquire land trust beneficiary interests in Kyobashi 1-chome, further strengthening its asset base.
ENVALITH's Perspective
Performance Trend
Revenue maintained an expansionary trend, growing from ¥563,414 million in FY2022 (ended March 2022) to ¥650,368 million in FY2026 (ending March 2026), but FY2026 saw a pullback, down 2.9% year on year. Operating profit has worsened for four consecutive periods since peaking at ¥20,401 million in FY2023 (ended March 2023), falling to ¥10,075 million in FY2026 (down 25.6% year on year). The main external factor was a decline in global demand for graphic paper and falling prices. Gross profit rose slightly to ¥130,042 million year on year (helped by a decrease in cost of sales), but SG&A expenses increased to ¥119,966 million (from ¥115,572 million in the prior period), squeezing operating profit. In non-operating items, interest expense increased to ¥3,130 million (from ¥2,711 million in the prior period), and ordinary profit deteriorated sharply to ¥6,175 million (down 36.4% year on year). Meanwhile, operating cash flow improved to ¥19,814 million (from ¥11,169 million in the prior period), and the period-end balance of cash and cash equivalents increased to ¥12,630 million.
Growth Strategy
Aiming for ¥20 billion in operating profit for FY2028 (ending March 2028) through M&A-driven expansion of non-paper businesses and enhanced e-business
In FY2026 (ending March 2026), the company acquired Fortuna Digital Holding, Club Groupe S.A.S, Texo Group (Europe), and the ABL Distribution business (Australia). As a subsequent event, Spandex Australia (acquisition cost ¥3,378 million) became a subsidiary effective April 1, 2026. Revenue and profit contribution from the Visual Communication Business in Europe and Asia Pacific is expanding.
In Asia Pacific, revenue and gross profit in the Packaging Business increased significantly, driven by strong performance from Signet (acquired in the previous fiscal year) as well as contributions from the ABL Distribution business. In Europe, profit contributions from companies acquired in the previous fiscal year also continued. Demand remains firm, particularly for food and other retail applications, and the business is functioning as a profit source that offsets the decline in the Paper Business.
An increase in the composition ratio of EC sales is explicitly stated as a premise for the FY2027 (ending March 2027) earnings forecast. The company aims to acquire new customers through digital channels and improve convenience for existing customers, thereby expanding revenue across the Paper, Packaging, and Visual Communication businesses. Specific progress figures have not been disclosed.
On March 31, 2026, the company entered into an agreement to acquire trust beneficiary interests in land located in Kyobashi 1-chome, Chuo-ku, Tokyo (acquisition price ¥19,850 million), with execution scheduled for June 30, 2026. The purpose is to improve leasing income/loss and secure future flexible sale options for the land and building as a unit; acquisition funds are planned to be covered by new borrowings.
Last updated: July 19, 2026