Daio Paper Corporation [3880.T]
TOKYO, May 15 (Pulse News Wire) – Daio Paper Corporation (3880.T) reported higher-than-expected quarterly profit for the fiscal year ending March 31, 2026, driven by favorable foreign exchange gains and operational efficiencies. The company recorded a net income per share of ¥53.7 million compared to the previously forecasted ¥30.0 million.
Operating profit came in at ¥24.03 billion, exceeding the projected ¥22.00 billion. Similarly, ordinary profit reached ¥21.34 billion, surpassing the estimated ¥14.00 billion. The improved performance was attributed to successful price adjustments in the Home & Personal Care segment and structural reforms in the Home & Other segments, which outpaced initial expectations. Additionally, the weakening yen contributed significant positive foreign exchange impacts on intercompany loans denominated in foreign currencies.
In its individual financial statements, Daio Paper recognized a loss on investment in related companies amounting to ¥12.05 billion due to impairment charges from its overseas subsidiary, Daio (Nantong) Living Products Co., Ltd. However, this did not affect the consolidated financial results as such losses are eliminated in consolidation. The company also noted a special loss provision of ¥1.776 billion resulting from the partial divestiture of shares held in its subsidiary Forestal Anchile LTDA. Despite this, the overall impact on earnings was positive, leading to a better-than-forecasted outcome.
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