Japan Pulp and Paper Company

Japan Pulp and Paper cuts FY2027 operating profit forecast 16% on weak European demand

Japan Pulp and Paper lowered its operating profit forecast for the year to March 2027 to USD 82.3m (JPY 13.0bn) from USD 98.2m (JPY 15.5bn), and its net profit forecast to USD 38.0m (JPY 6.0bn) from USD 50.7m (JPY 8.0bn). It cites weak demand in Europe for its overseas wholesale business and restructuring costs at its German subsidiary. Net sales guidance is unchanged; first-half net sales rose 9.1% to USD 1.984bn (JPY 313.228bn).

Why this mattersWeak European wholesale demand and German restructuring at a major pulp and paper trading house signal continued softness in paper markets supplying the packaging value chain.

• Operating profit forecast for the year to March 2027 cut to USD 82.3m (JPY 13.0bn) from USD 98.2m (JPY 15.5bn)
• Net profit forecast cut to USD 38.0m (JPY 6.0bn) from USD 50.7m (JPY 8.0bn)
• Overseas wholesale earnings hit by persistently weak demand in Europe, a key market
• Restructuring costs expected at the German subsidiary
• First-half net sales up 9.1% to USD 1.984bn (JPY 313.228bn); operating profit up 25.4% to USD 34.36m (JPY 5.426bn)
• Net sales guidance unchanged

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