Nippon Paper published its financial forecast for the fiscal year ending March 31, 2021 (April 1, 2020 to March 31, 2021). The forecast had been undetermined previously due to the impact of the coronavirus pandemic, and was not yet available due to the difficulty in making a reasonable calculation. Based on the information available at the moment, the expectations released by the Japanese producer last week show sales figures quite stable (-4.2%) compared to the huge drop in profits (-43%).
As for the impact of the new coronavirus infection, we expect the demand expectations for newsprint and printing paper has hit the bottom in the first quarter of this fiscal year and then will gradually begin to recover. Regarding the demand for household papers such as tissue paper and toilet rolls, which has been declining due to the reaction of panic buying occurred at the end of the previous fiscal year, has also hit the bottom in the first quarter of this fiscal year and then will gradually begin to recover to the normal levels in the second half of the year.
It is also anticipated posting temporary acquisition-related expenses of approximately 5,500 million yen, including stamp taxes related to the transfer of the paperboard packaging business in Australia and New Zealand, mainly in the second quarter of this fiscal year ended March 2021.
The foreign exchange rate and price of raw materials are assumed to fluctuate at the current level.
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