Mitsubishi Paper FY3/26 Operating Profit Slumps 94% to ¥264m on Weak Demand; Sees Sharp Rebound

Mitsubishi Paper Mills saw full-year operating profit collapse 94.2% to ¥264 million as revenue fell 10.5%, but strong securities-driven comprehensive income cushioned the year and the company guides a sharp recovery to ¥6.0 billion operating profit and a higher dividend for FY3/27.

Mitsubishi Paper Mills Mitsubishi Paper Mills · TSE

Mitsubishi Paper Mills Ltd. (TSE: 3864), which makes printing and communication papers, imaging and photographic materials, functional and industrial materials and filters, reported results for the year ended March 31, 2026. Under Japanese GAAP, consolidated revenue fell 10.5% to ¥157.46 billion and operating profit slumped 94.2% to ¥264 million. Ordinary profit fell 62.2% to ¥1.72 billion and net profit attributable to owners fell 56.2% to ¥1.90 billion. EPS was ¥43.37, down from ¥99.13. Comprehensive income, however, jumped to ¥18.63 billion (from a ¥5.24 billion loss) on gains in the value of investment securities.

Weak paper demand squeezes margins

Structurally declining paper demand and cost pressures nearly wiped out operating profit; ordinary and net profit held up better thanks to non-operating income. The non-consolidated parent posted a small net loss of ¥314 million.

Balance sheet and dividend

Total assets were ¥222.78 billion and net assets ¥103.19 billion — lifted by the securities revaluation — for an equity ratio of 46.3%. The FY3/26 dividend was held at ¥15.00 per share; for FY3/27 the company plans to raise it to ¥20.00 (¥7 interim plus ¥13 year-end).

Outlook

Guidance for the year to March 2027 points to a sharp recovery: revenue of ¥175.00 billion (+11.1%), operating profit of ¥6.00 billion (up from ¥264 million), ordinary profit of ¥6.00 billion (+248.8%) and net profit of ¥6.50 billion (+242.0%), for EPS of ¥148.31.

Mitsubishi Paper Mills — FY3/2026 Key Financials (J-GAAP, consolidated)
MetricFY3/26FY3/25YoY
Revenue (¥m)157,455175,942−10.5%
Operating profit (¥m)2644,567−94.2%
Ordinary profit (¥m)1,7204,548−62.2%
Net profit attrib. (¥m)1,9004,343−56.2%
EPS (¥)43.3799.13−56.2%
Equity ratio46.3%40.9%+5.4pp
FY3/27 net guidance (¥m)6,5001,900+242.0%

JapanStockPulse provides informational content only and does not constitute investment advice. Figures are taken from the company's published earnings short report and may be subject to subsequent revision.