Labels
Shrink Sleeve Labels
In FY2025, the shrink sleeve label business focused on strengthening its foundation to improve profitability while also driving business growth in support of FSG.30. As a result of improvement initiatives undertaken across all regions, profitability increased in every region, further transforming the business into a stable earnings generator. Despite significant changes in the external environment, growth in the dairy industry in the Americas made a major contribution, resulting in higher sales for the business overall. I believe these achievements were made possible by the efforts of all employees involved in the business.
FY2025 was also a year in which we planted the seeds for future growth in the shrink sleeve label business. We made progress in preparing for entry into the Indian market, and conducted advanced development activities aimed at industries and regions where shrink sleeve labels have not yet been widely adopted.
In FY2026, we will focus on further strengthening our business foundation and bringing newly developed products to market to support continued growth. We will approach every challenge with a strong sense of speed and a commitment to execution.
Accelerating growth through the integration of shrink sleeve labels and machinery
In the Americas Region, our systems sales approach, which combines shrink sleeve labels and machinery, has been highly successful. By gaining an early understanding of customers' capital investment plans and SKU* changes, we are able to provide proposals that address both packaging and machinery requirements.
In addition, our three-plant production network, strategically located near customer facilities, enables a stable supply of products. Combined with our integrated manufacturing process, from film production to printing and bag manufacturing, we consistently deliver high-quality products. Leveraging our strengths in systems solutions, functionality, and decorative design for shrink sleeve labels, we continue to expand our business together with our customers.
*SKU (Stock Keeping Unit): The smallest unit used for inventory control and order management, representing a specific product specification or variation
Pressure Sensitive Labels
Net sales in FY2025 were 99% of the previous year's level. In Japan, sales declined due to a review of the product portfolio following the closure of the Sagae Plant. In the Americas, sales were affected by the replacement of certain key products. In contrast, the Europe Region achieved double-digit growth by focusing on businesses with strong competitive advantages.
As part of our efforts to achieve the No. 1 position in selected pressure sensitive label markets, we developed the liner-less label system as one of our key strategic initiatives. We secured an order for the first commercial application together with a labeler, with operations scheduled to begin in 2027.
We also began collaborating with overseas partners and launched the development of a labor-saving labeler system designed to improve customer productivity. The first unit is scheduled for installation in FY2026. In addition, as part of a co-creation project with a customer, we successfully commercialized the PIR label,* an environmentally friendly packaging solution.
*PIR (post-industrial recycling): The reuse of plastic waste generated during the manufacturing of products
Development of the PIR label
Through collaboration with a partner company that possesses advanced technology capable of converting a
wide range of PET container scrap into film, we successfully developed and commercialized a pressure sensitive label as
an environmentally friendly solution.
To bring this initiative to commercialization, we reused scrap generated during the manufacturing process of Rohto
Pharmaceutical Co., Ltd.'s eye drop containers. In addition, we improved product quality by modifying the printing
process used for pressure sensitive labels, ultimately leading to successful commercialization.
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