Introducing the OVOL Japan Pulp & Paper Group Global Network - with the ability to purchase and supply the optimal paper products to meet the needs of customers no matter where in the world they might be.
Our first foray into the global arena dates back to 1899. Since then we have continued to do business in a number of countries and regions with differing cultures and business customs. We have firmly established ourselves in each region and are building on our know-how as we continue to expand our business activities throughout the world. We currently have paper distribution operations with inventory. We currently have paper distribution operations with inventory and delivery functions in the U.S., the U.K., Ireland, Germany, France, Australia, New Zealand, India, Hong Kong, Singapore, Malaysia We currently have paper distribution operations with inventory and delivery functions in the U.S., the U.K., Ireland, Australia, New Zealand, Hong Kong, Singapore and Malaysia, and have established systems to enable the stable supply of products throughout each region. This allows us to promote “glocalization,” delivering products such as copy paper, labels, and films directly to consumers, rather than simply supplying products to printers and paper processing companies. By maximizing our strengths rooted in each country and region, we aim to create synergies and become the world's number one paper distribution group.
In fiscal 2022, we experienced significant fluctuations in profits due to market conditions that were not anticipated during the formulation of our previous medium-term business plan. These fluctuations were caused by factors such as the tightening of maritime logistics and the surge in raw material prices. In fiscal 2023, the impact of these factors led to reduced sales due to inventory adjustments. On the other hand, structural reforms at each business location, which we have been working on since before the expansion of the COVID-19 pandemic, contributed to improved profitability. Additionally, we achieved significant results by steadily executing complementary M&A in regions such as Europe, Southeast Asia, and Oceania, focusing on packaging, signs & displays, films, and flexible packaging.
In Medium-term Business Plan 2026 we will continue to execute complementary M&A to build a stable revenue structure and further diversify our revenue sources. These M&A activities aim not only to expand our range of products and services but also to create synergies by sharing suppliers and customers among group companies, thereby expanding sales opportunities for each other.
While the CEOs and CFOs of our group companies are well-versed in M&A and have been able to achieve results, developing such talent within our company is an urgent issue. We are addressing this as one of the challenges in our Medium-term Business Plan 2026.