Oji Holdings has cut its operating-profit forecast for the year to March 2027 by 25%, to ¥45bn from ¥60bn, while leaving its net-profit forecast at ¥35bn. Ordinary-profit guidance falls 33.3% to ¥30bn from ¥45bn, and the sales forecast rises to ¥1.96tn from ¥1.94tn. The dividend forecast stays at ¥36 a share.
Costs behind the cut
Oji points to slower recovery in pulp markets and higher costs in its overseas business. In Japan, it expects raw-material and fuel prices to stay high because the Middle East situation has dragged on. The company's results briefing breaks out the domestic burden: of ¥45.5bn in higher raw-material and fuel costs expected year on year, Oji attributes ¥23bn to the Middle East. These are Oji's own explanations.
A better half than planned
The April to September half did better than Oji had projected. Operating profit of ¥15.5bn was below the ¥16.7bn of a year earlier but above the company's previous forecast, which it credits to domestic cost cuts and gains in other businesses. Net profit rose to ¥11.7bn from ¥10.9bn. Below the operating line, the half carried a ¥4.9bn foreign-exchange gain and a ¥10.8bn gain on sales of investment securities.
What holds up net profit
Oji says it will narrow the profit shortfall by selling shareholdings, which is why net profit guidance is unchanged. The ¥35bn figure still sits well below last year's ¥55.6bn. The revision notice gives no amount for the further share sales the forecast relies on. Oji's stated reason for the unchanged net-profit guide is share sales, while the operating line carries the cost pressure.