Nankai Plywood reports strong half-year earnings, acquires French manufacturer

Nankai Plywood announced robust consolidated financial results for the second quarter ended September 30, 2025, reporting a 309.2% increase in operating profit to JPY 833 million and a 7.2% rise in net sales to JPY 12,570 million compared to the previous interim period. Ordinary profit reached JPY 1,607 million, a significant turnaround from a JPY 217 million loss. Net income attributable to owners of parent also saw substantial growth to JPY 972 million from a JPY 404 million loss. Basic earnings per share were JPY 1,004.07.

The company recognized foreign exchange gains totaling JPY 581 million in its consolidated results, with JPY 494 million in individual results, contributing to the strong performance. These gains resulted from revaluations of foreign currency-denominated receivables and payables with overseas subsidiaries due to exchange rate fluctuations. Furthermore, Nankai Plywood acquired 100% of ETABLISSEMENTS GUY JOUBERT, a French plywood manufacturer, on October 1, 2025, for €24 million. This strategic move aims to expand overseas sales and strengthen its corporate structure against currency fluctuations.

Despite the positive results, Nankai Plywood recorded impairment losses on loans to subsidiaries. It recognized an allowance for doubtful accounts of JPY 404 million for NP ROLPIN SAS, bringing the total allowance to JPY 3,577 million due to the subsidiary's debt overhang from high energy prices and economic slowdown. An additional JPY 63 million was allocated for ROLKEM SAS, increasing its allowance to JPY 1,108 million. These individual impairment losses do not impact consolidated results.