All four segments grow profit
Rengo Co., Ltd. (TSE: 3941) reported consolidated results for the first half of FY3/2027, April 1 to September 30, 2026, on November 5, 2026. Paperboard & Paper Processing raised operating profit 43.0% to ¥17,947 million as price revisions outweighed higher fixed and fuel costs; paperboard output rose 1.9% to 1,256 thousand tonnes on higher intra-group supply and exports to China and Southeast Asia. Flexible Packaging more than doubled operating profit to ¥12,282 million on price revisions and stockpiling of packaging materials prompted by the tense Middle East situation, and Heavy-Duty Packaging rose 54.6% to ¥1,682 million for similar reasons.
Overseas operating profit rose to ¥653 million from ¥147 million on price revisions and newly consolidated subsidiaries, while the Other businesses were flat at ¥629 million. Rengo raised cellophane prices from July deliveries to absorb higher energy, labour, logistics and dissolving-pulp costs. In April it set up RS Wood Refinery, a joint venture with Sumitomo Forestry to secure wood chips and develop second-generation bioethanol; in September Howa Sangyo acquired Yashio Kagaku in flexible packaging, and Thai Containers Group bought into the Thai corrugated maker Jinjong Hua Paper Industrial.
Guidance held, dividend up ¥10
Rengo kept its FY3/2027 forecast of net sales of ¥1,090,000 million (+8.1%), operating profit of ¥46,000 million (+24.0%), ordinary profit of ¥44,000 million and net profit attributable to owners of ¥31,000 million (+47.6%). It paid an interim dividend of ¥25, against ¥20, and plans ¥25 at year-end for an annual ¥50, up from ¥40. Total assets rose 4.7% to ¥1,374,468 million, and the equity ratio was 37.0%.
| Metric | H1 FY3/2027 | H1 FY3/2026 | Change |
|---|---|---|---|
| Net sales (¥ million) | 554,141 | 497,220 | +11.4% |
| Operating profit (¥ million) | 33,369 | 19,974 | +67.1% |
| Ordinary profit (¥ million) | 34,269 | 20,037 | +71.0% |
| Net profit attrib. to owners of parent (¥ million) | 20,850 | 11,033 | +89.0% |
| Comprehensive income (¥ million) | 40,998 | 6,619 | +519.4% |
| EPS (¥) | 85.65 | 44.50 | +92.5% |
| Paperboard & Paper Processing — revenue (¥ million) | 275,683 | 260,976 | +5.6% |
| Paperboard & Paper Processing — segment profit (¥ million) | 17,947 | 12,552 | +43.0% |
| Flexible Packaging — revenue (¥ million) | 113,528 | 96,798 | +17.3% |
| Flexible Packaging — segment profit (¥ million) | 12,282 | 5,356 | +129.3% |
| Heavy-Duty Packaging — revenue (¥ million) | 29,168 | 25,397 | +14.8% |
| Heavy-Duty Packaging — segment profit (¥ million) | 1,682 | 1,088 | +54.6% |
| Overseas — revenue (¥ million) | 124,710 | 103,684 | +20.3% |
| Overseas — segment profit (¥ million) | 653 | 147 | +344.2% |
| Total assets (¥ million) | 1,374,468 | 1,313,086 | +4.7% |
| Net assets (¥ million) | 550,014 | 528,554 | +4.1% |
| Equity ratio | 37.0% | 37.3% | -0.3 pt |
| FY3/2027 guidance — revenue (¥ million) | 1,090,000 | — | +8.1% |
| FY3/2027 guidance — operating profit (¥ million) | 46,000 | — | +24.0% |
| FY3/2027 guidance — net profit (¥ million) | 31,000 | — | +47.6% |
| Annual dividend per share (¥) | 50.00 | 40.00 | +25.0% |
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.