Hokuetsu Corporation revises forecasts downward amidst challenging markets

Hokuetsu Corporation has significantly revised its consolidated financial forecasts for the first half and full fiscal year ending March 31, 2026. For the first half, net sales are now projected to be JPY 139,000m, a decrease of JPY 11,000m from the previous forecast of JPY 150,000m. Operating profit is revised down by JPY 6,000m to JPY 2,000m (a 75.0% decrease), while ordinary profit is reduced by JPY 6,000m to JPY 3,000m (a 66.7% decrease). Profit attributable to owners of parent is expected to be JPY 2,300m, down by JPY 3,700m (a 61.7% decrease), resulting in basic earnings per share of JPY 13.67.

The full-year forecast for fiscal year 2026 also sees substantial revisions. Net sales are now anticipated to be JPY 292,000m, a reduction of JPY 11,000m from the initial JPY 303,000m. Operating profit is revised down by JPY 10,000m to JPY 8,000m (a 55.6% decrease), and ordinary profit by JPY 11,000m to JPY 10,000m (a 52.4% decrease). Profit attributable to owners of parent is now projected at JPY 6,000m, a JPY 9,000m decrease (a 60.0% decrease), leading to basic earnings per share of JPY 35.67.

These revisions are attributed to a decline in pulp sales volume and prices in overseas markets, a decrease in paper and paperboard sales volume, and the depreciation of the yen against assumed rates. Hokuetsu Corporation confirmed that these forecast revisions do not impact its dividend forecast.