Tokushu Tokai Paper reports strong Q2 growth, outlines strategic initiatives

Tokushu Tokai Paper recorded substantial growth in the second quarter of the fiscal year ending March 2026. Consolidated net sales increased by 2.9% year-on-year to JPY47,910. Operating profit saw a significant surge of 25.9% to JPY2,359, while ordinary profit climbed 8.8% to JPY3,327. Net profit attributable to parent company shareholders also grew by 10.1% to JPY2,307. This performance was driven by increased sales and environmental initiatives in the paper manufacturing business.

Segment-wise, industrial materials reported a 2.7% increase in sales to JPY22,750 and a 68.3% rise in operating profit to JPY599, attributed to higher selling prices and successful power generation. The household goods segment's sales rose 3.9% to JPY9,645, with operating profit up 31.7% to JPY446. The environmental segment saw a remarkable 9.5% sales increase to JPY8,848 and a 121.0% jump in operating profit to JPY475, benefiting from the recovery of group companies and increased civil engineering orders.

Looking ahead, the company maintains its full-year forecast, projecting JPY99,000 in sales, JPY5,000 in operating profit, and JPY7,000 in ordinary profit. Strategic initiatives include a 3-for-1 stock split to improve liquidity and investor accessibility, as well as the introduction of a stock-based compensation system for employees. Tokushu Tokai Paper is also expanding its recycling business and progressing with its whiskey venture, which is expected to turn profitable in the fiscal year ending March 2026.