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Presentation materials for financial results3865Hokuetsu CorporationMaterials and Chemicals

Earnings Presentation Materials for the Fiscal Year Ending March 2026

For the nine months ended December 2025, net sales, operating income, ordinary income and net income were below the year-earlier levels, with operating income in particular posting a substantial decline. For the fiscal year ending March 2027, the company plans to increase net sales but expects lower operating income and below, reflecting anticipated increases in raw material and fuel prices, among other factors.

Worth reading
58In focus
0–100. This measures how worthwhile something is to read, not how good or bad the company is.
Direction
Deterioration
Direction inferred from the company’s description.
Scale
-12188
¥ millions (year-on-year change in operating income)
Wording
Avoiding a definitive answer
How definitive the wording is.

Contents of this document

Presentation materials for financial resultsFiscal year ending March 2026, third quarter10 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥287,736 million-5.9%
Operating profit¥7,539 million-61.8%
Ordinary income¥11,271 million-39.9%
Net income¥7,299 million-53.0%
Operating profit margin2.6 %
Full-year earnings forecast
Net Sales
¥305,000 million
Operating profit
¥3,000 million
Ordinary income
¥4,000 million
Net income
¥5,000 million
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Operating income is showing a slight negative trend but is broadly in line with expectations. Ordinary income and below are above the earnings forecast.
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
  • Selling Prices-¥5.9 billion
  • Raw Materials and Fuel Prices+¥1.8 billion
  • Production and sales volumes-¥3.2 billion
  • Internal factors-¥3.4 billion
  • Selling, general and administrative expenses–¥1.1 billion
  • Other-¥400 million
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
  • Market exchange rate
    Fiscal year ending March 2026151
    Fiscal year ending March 2027160
  • Dubai crude oil
    Fiscal year ending March 202672
    Fiscal year ending March 202790
  • Depreciation
    Fiscal year ending March 2026138
    Fiscal year ending March 2027150
  • Capital Expenditure
    Fiscal year ending March 2026195
    Fiscal year ending March 2027230
New initiatives
  • Deepening the strategic business alliance with Daio Paper Corporation
  • Further expanding round-trip transportation routes
  • Mutual use of both companies' chip vessel allocation systems
  • Maximizing OEM benefits, including facility consolidation and integration
  • Further reducing costs in manufacturing processes and boilers
  • Utilizing marine and rail transportation
  • Expanding the scope of the business alliance
Key KPIsA metric the company considers important as a management benchmark.
  • EBITDA¥26,142 million
  • EPS43.59 Yen per share
  • ROE2.8 %
  • ROA (ordinary income)2.7 %
  • Net debt-to-equity ratio0.27 times
Unit price and quantity metricsThese figures show sales broken down by price and volume.
  • ProductPaper
    Number of versions
    1,007 thousand tonnes
    Average price
    137.8 Yen/kg
  • ProductPaperboard
    Number of versions
    368 thousand tonnes
    Average price
    114.8 Yen/kg
  • ProductPulp
    Number of versions
    623 thousand tonnes
    Average price
    92.3 Yen/kg
Segment results
Pulp and Paper Business
Net Sales
¥261,384 million-6.7%
Operating profit
¥5,963 million-67.3%
Packaging and paper processing business
Net Sales
¥17,437 million+4.7%
Operating profit
¥558 million+144.0%
Other segments, etc.
Net Sales
¥8,914 million+1.1%
Operating profit
¥1,017 million-18.4%
Capital expenditures
¥195 100 million actual for the fiscal year ended March 2026
Annual Dividend
Fiscal year ending March 2026
Annual26 Yen per share
Interim13 Yen per share
End of period13 Yen per share
Forecast for the fiscal year ending March 2027
Annual26 Yen per share
Interim13 Yen per share
End of period13 Yen per share
Acquisition of treasury shares
110 Hundreds of millions of yen
Contents of this document
ItemDetails
Document typePresentation materials for financial results
Fiscal Period CoveredFiscal year ending March 2026, third quarter
Net Sales¥287,736 million (YoY -5.9%)
Operating profit¥7,539 million (YoY -61.8%)
Ordinary income¥11,271 million (YoY -39.9%)
Net income¥7,299 million (YoY -53.0%)
Operating profit margin2.6 %
Full-year earnings forecastNet Sales ¥305,000 million / Operating profit ¥3,000 million / Ordinary income ¥4,000 million / Net income ¥5,000 million
Self-assessment against the planOperating income is showing a slight negative trend but is broadly in line with expectations. Ordinary income and below are above the earnings forecast.
Segment resultsPulp and Paper Business Net Sales ¥261,384 million (YoY -6.7%) / Operating profit ¥5,963 million (YoY -67.3%) / Packaging and paper processing business Net Sales ¥17,437 million (YoY +4.7%) / Operating profit ¥558 million (YoY +144.0%) / Other segments, etc. Net Sales ¥8,914 million (YoY +1.1%) / Operating profit ¥1,017 million (YoY -18.4%)
Breakdown of Factors Affecting the ChangeFactors Selling Prices / Amount -¥5.9 billion, Factors Raw Materials and Fuel Prices / Amount +¥1.8 billion, Factors Production and sales volumes / Amount -¥3.2 billion, Factors Internal factors / Amount -¥3.4 billion, Factors Selling, general and administrative expenses / Amount –¥1.1 billion, Factors Other / Amount -¥400 million
Key KPIsIndicator name EBITDA / Value ¥26,142 million / Year on year against the same period last year Not disclosed, Indicator name EPS / Value 43.59 Yen per share / Year on year against the same period last year Not disclosed, Indicator name ROE / Value 2.8 % / Year on year against the same period last year Not disclosed, Indicator name ROA (ordinary income) / Value 2.7 % / Year on year against the same period last year Not disclosed, Indicator name Net debt-to-equity ratio / Value 0.27 times / Year on year against the same period last year Not disclosed
Unit price and quantity metricsProduct Paper / Number of versions 1,007 thousand tonnes / Average price 137.8 Yen/kg, Product Paperboard / Number of versions 368 thousand tonnes / Average price 114.8 Yen/kg, Product Pulp / Number of versions 623 thousand tonnes / Average price 92.3 Yen/kg
Assumptions Underlying the Business OutlookItem Market exchange rate / Fiscal year ending March 2026 151 Yen/Dollar / Fiscal year ending March 2027 160 Yen/Dollar, Item Dubai crude oil / Fiscal year ending March 2026 $72 /bbl / Fiscal year ending March 2027 $90 /bbl, Item Depreciation / Fiscal year ending March 2026 138 Hundreds of millions of yen / Fiscal year ending March 2027 150 Hundreds of millions of yen, Item Capital Expenditure / Fiscal year ending March 2026 195 Hundreds of millions of yen / Fiscal year ending March 2027 230 Hundreds of millions of yen
Annual DividendFiscal year ending March 2026 Annual 26 Yen per share / Interim 13 Yen per share / End of period 13 Yen per share / Forecast for the fiscal year ending March 2027 Annual 26 Yen per share / Interim 13 Yen per share / End of period 13 Yen per share
Acquisition of treasury sharesAmount 110 Hundreds of millions of yen / Period Not disclosed
Capital expenditures¥195 100 million (actual for the fiscal year ended March 2026)
New initiativesDeepening the strategic business alliance with Daio Paper Corporation, Further expanding round-trip transportation routes, Mutual use of both companies' chip vessel allocation systems, Maximizing OEM benefits, including facility consolidation and integration, Further reducing costs in manufacturing processes and boilers, Utilizing marine and rail transportation, Expanding the scope of the business alliance
Items this document does not state (13)
Gross Profit MarginSelling, general and administrative expensesResults for the three months of the current quarterProgress against full-year forecastNumber of stores and locationsNumber of employeesRisk amount incorporated into the outlookMedium-term management plan targetsFinancial targetsPayout ratioOrders received and order backlogMarket Size / ShareKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

The company explained that the decline in sales and earnings was attributable to the global softening of pulp market conditions, lower domestic demand for paper, and weaker export market conditions. It also said that the negative impact of selling prices could not be sufficiently offset by positive factors such as operating efficiency and raw material and fuel costs. For the fiscal year ending March 2027, the company has factored in pressure on earnings from the impact of the situation in the Middle East and higher raw material and fuel prices.

How to read this page

This is not the documentKomori reads the disclosure the company filed and writes this summary. Figures are as stated by the company and are not audited.
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Corrections happenIf the company reissues this disclosure, the page is rebuilt from the corrected version and the revision number moves up.
Earnings Presentation Materials for the Fiscal Year Ending March 2026 | Hokuetsu Corporation (3865) timely disclosure | Komori