恵和 has revised downward its earnings outlook for the fiscal year ending December 2026 and set out a policy of accelerating its automotive and process paper businesses, with overseas operations as the key focus. It aims to restore earnings through the global expansion of its automotive business and the strengthening of its process paper operations overseas.
恵和 has revised downward its earnings outlook for the fiscal year ending December 2026. Revenue is projected at ¥20,877 million, operating profit at ¥2,842 million, ordinary profit at ¥2,968 million, and net income attributable to owners of the parent at ¥2,055 million. Compared with the initial forecast, revenue is expected to be down 10.1%, operating profit down 35.5%, ordinary profit down 32.7%, and net profit down 32.7%. The company has factored in higher cost of sales resulting from the worsening situation in the Middle East and will pursue 3 initiatives, including selling, general and administrative expenses and depreciation.
The company plans to advance its overseas expansion around the following 3 initiatives. First, it will strengthen international marketing, using its Vietnam base and developing bases in Europe and the United States to mitigate international logistics risks for its automotive business. Second, to enhance quality and production capacity, it will seek to improve quality and productivity using digital data and achieve on-schedule deliveries. Third, it will bring forward the development of new products, introduce machinery to meet demand related to EVs, and plan to expand environmentally compatible film products such as “A!Prog-UF” in overseas markets.