Nippon Paper Industries Co.,Ltd. announced on 7 September that it had suspended its Hungarian subsidiary and recorded an extraordinary loss of approximately ¥5 billion. This is expected to affect the company's latest earnings trend.
According to the earnings report released on 5 August 2026, revenue for the first quarter of the fiscal year ending March 2027 rose 7.5% year on year to ¥314.5 billion, while operating profit fell 47.0% to ¥2.9 billion, ordinary profit fell 54.8% to ¥2.5 billion, and quarterly net loss attributable to owners of the parent was ¥200 million. Weakness in the overseas business and rising raw material, fuel and labor costs weighed on earnings.
In addition, a summary of the latest earnings trend indicates that results have remained flat over the past 12 quarters, with the net profit margin negative and the equity ratio indicating limited financial stability.
The suspension of the Hungarian subsidiary announced on 7 September is expected to result in the recognition of an extraordinary loss of approximately ¥5 billion, heightening market interest in this as a factor that could affect recent price trends.