Mitsubishi Paper Mills (3864) investor relations material

Executive summary

• Net sales for Q1 FY2026 were ¥38,620 million, down 2.1% year-over-year, but operating profit improved to ¥393 million from a loss of ¥1,221 million in the prior year.

• Ordinary profit reached ¥611 million, reversing a loss of ¥1,093 million, and profit attributable to owners of parent was ¥2,159 million, up from a loss of ¥1,316 million, aided by gains from the sale of cross-shareholdings.

• The company is executing its Medium-term Management Plan, focusing on technological sophistication, environmental initiatives, and governance reforms.

• Structural reforms in the German subsidiary and cost reductions contributed to improved profitability.

• An earthquake in June 2026 caused temporary production disruption at the Hachinohe Mill, but operations resumed quickly with no injuries or environmental impact.

Financial highlights

• Gross profit increased to ¥4,967 million from ¥3,845 million year-over-year.

• Operating profit was ¥393 million, compared to a loss of ¥1,221 million in Q1 FY2025.

• Ordinary profit improved to ¥611 million from a loss of ¥1,093 million.

• Profit attributable to owners of parent was ¥2,159 million, up from a loss of ¥1,316 million, supported by extraordinary gains from asset sales.

• Comprehensive income was ¥1,037 million, compared to a loss of ¥2,225 million in the prior year.

Outlook and guidance

• Full-year net sales forecast is ¥175,000 million, up 11.1% year-over-year.

• Full-year operating income forecast is ¥6,000 million, ordinary income ¥6,500 million, and profit attributable to owners of parent ¥6,000 million.

• Earnings per share forecast for the full year is ¥148.31.

• No changes to previously announced forecasts.