Toyo Ink Q3 sales dip but strategic expansion targets future growth

Toyo Ink SC Holdings announced its third-quarter results for the fiscal year ending December 2025, reporting net sales of 258.4 billion yen, a 0.7% decrease, and operating profit of 14.9 billion yen, a 5.8% decrease year-on-year. Despite the overall dip, operating profit has been improving since Q1, with Q3 showing an increase in both sales and profit compared to the previous year. The Polymers and Coatings and Packaging Materials segments were key performance drivers, while Colorants and Functional Materials saw profit decrease due to weak performances in CNT dispersions and CF materials.

The company is strategically expanding its liquid ink business with growth investments overseas and efficiency investments domestically. Notably, Toyo Ink India will boost its liquid ink production capacity by 1.5 times at its Gujarat Plant, targeting operations to begin in 2028, to capture the growing Indian packaging market. Domestically, efficiency investments are focused on automation and labor-saving measures at the Saitama Plant to strengthen the business base.

Additionally, Toyo Ink announced the establishment of a "horizontal recycling" scheme for product sample sheets for vending machines in cooperation with Toyobo. The company also inaugurated "Incubation CANVAS TOKYO," a global co-creation hub in Kyobashi Edgrand, to foster technology and ideas in materials. These initiatives align with the company's mid-term management plan, which aims to increase shareholder returns with a total payout ratio target of 50% or more.