Oji Holdings slashes FY2026 forecast, maintains dividend despite challenges

Oji Holdings Corporation announced a revision to its consolidated financial forecast for the fiscal year ending March 2026, reducing projections across key metrics. Net sales are now forecast at ¥1,850,000 million, down from ¥1,900,000 million. Operating profit is revised to ¥45,000 million (from ¥75,000 million), and ordinary profit to ¥35,000 million (from ¥60,000 million). Profit attributable to owners of parent is also lowered to ¥50,000 million (from ¥65,000 million), impacting the profit per share to ¥54.25 (from ¥69.50). These adjustments reflect a decrease in sales volume and a decline in the export pulp market in domestic business, alongside deteriorating overseas market conditions for pulp.

Despite the significant downward revisions to profit forecasts, Oji Holdings stated that the annual dividend for the year ending March 2026 remains unchanged at ¥36 per share, matching the initial forecast. The company's interim results for the first half of FY2025 showed net sales of ¥915.0 billion and operating profit of ¥16.7 billion, a 0.9% and 55.0% year-on-year decrease respectively.

The company also highlighted ongoing business restructuring and growth investments, including the closure of certain plants, divestment of overseas businesses, and expansion into sustainable packaging and biomass. These strategic initiatives are part of their "Long-Term Vision 2035" and "Medium-Term Business Plan 2027" aimed at improving capital efficiency and transforming their portfolio.