Japan Pulp & Paper boosts dividends, plans share buyback despite profit slump

Japan Pulp & Paper Company Limited reported a 3.1% increase in revenue to JPY 287,131 million for the six months ended September 30, 2025, but a substantial decline in operating profit by 47.1% to JPY 4,327 million and an 83.9% drop in profit attributable to owners of parent to JPY 920 million. Consequently, the company revised its full-year consolidated financial forecasts for fiscal year 2026. Ordinary profit is now projected at JPY 10,500 million, a 32.3% decrease from previous forecasts of JPY 15,500 million, with profit attributable to owners of parent expected to fall by 76.5% to JPY 2,000 million.

The revisions are attributed to sluggish demand and intensifying price competition in Non-Japan Wholesaling, delays in business recovery at German subsidiaries, increased procurement costs, and an impairment loss in the Raw Materials & Environment segment. In response, Japan Pulp & Paper introduced a new dividend policy incorporating a Dividend on Equity (DOE) target of 3% or more, in addition to a consolidated payout ratio of 30% or more. The company also increased its year-end dividend forecast for fiscal year 2026 from JPY 14.00 to JPY 20.00, resulting in a total annual dividend of JPY 34.00.

Furthermore, Japan Pulp & Paper announced a plan to acquire up to 10 million of its own shares, representing 7.97% of outstanding shares (excluding treasury stock), for a maximum of JPY 7,580 million, through an off-auction repurchase system on November 7, 2025. Following this, the company will retire 30 million treasury shares by November 28, 2025, to enhance capital efficiency.