Oji Holdings slashes 2026 forecast, maintains dividend despite profit drop

Oji Holdings Corporation has revised its consolidated financial forecast for the fiscal year ending March 31, 2026, projecting lower sales and profits. Net sales are now expected to be JPY1,850,000 million, down from JPY1,900,000 million. Operating profit is revised to JPY45,000 million (from JPY75,000 million), ordinary profit to JPY35,000 million (from JPY60,000 million), and profit attributable to owners of parent to JPY50,000 million (from JPY65,000 million). This downward revision stems primarily from decreased sales volume and a downturn in domestic export pulp markets, compounded by deteriorating market conditions in overseas pulp businesses.

Despite the reduced profit forecast, the company will maintain its previously announced annual dividend of JPY36 per share for the fiscal year ending March 2026. This decision is supported by the sale of shareholdings, which partially offsets the decline in ordinary profit. The company's updated forecast indicates a dividend payout ratio of 66.4% based on the revised profit.

The interim consolidated results for the first half of FY2025 (April 1 to September 30, 2025) reported net sales of JPY915,000 million, an operating profit of JPY16,731 million, and profit attributable to owners of parent of JPY10,920 million. These figures reflect a significant decrease in operating profit compared to the previous year's first half, primarily due to rising raw material, fuel, distribution, and personnel costs, alongside a foreign exchange loss from revaluation of foreign currency-denominated receivables and payables.