Daio Paper beats H1 forecasts despite extraordinary loss

Daio Paper Corporation announced it exceeded its consolidated financial results forecast for the first half of the fiscal year ending March 31, 2026. Operating profit, ordinary profit, and profit attributable to owners of parent all surpassed projections. Operating profit reached ¥8,559m, exceeding the ¥6,500m forecast by 31.7%, while ordinary profit hit ¥6,134m, a 145.4% increase over the ¥2,500m forecast. Profit attributable to owners of parent was ¥4,385m, significantly higher than the zero yen forecast.

This strong performance was driven by price revisions in the Home and Personal Care Domestic Business and structural reforms in H&PC Overseas Business, alongside foreign exchange gains and a reversal of provision for business restructuring. However, the company recorded an extraordinary loss of ¥4,368m for tax purpose reduction entry of non-current assets, related to insurance claim income of ¥6,334m from a boiler damage accident at its subsidiary Iwaki Daio Paper Corporation.

Despite the first-half over-performance and the extraordinary loss, Daio Paper Corporation maintained its initial full-year financial results forecast for FY2026/3. The company’s total assets stood at ¥875,760m as of September 30, 2025, with net assets at ¥246,915m, resulting in an equity-to-asset ratio of 26.7%. Basic earnings per share for the six months ended September 30, 2025, were ¥26.35.