Ahlstrom final accounts show a record high quarterly operating profit and strong sales growth
Ahlstrom-Munksjö Oyj: Ahlstrom FINANCIAL STATEMENTS RELEASE April 26, 2017 at 08:30
This is a summary of Ahlstrom Corporation’s Final Accounts Release. The complete report with tables is attached to this release and available at www.ahlstrom-munksjo.com
Ahlstrom Final Accounts Release
January-March 2017 compared with January-March 2016
- Net sales EUR 272.7 million (EUR 267.2 million), showing a gain of 2.1%. Comparable[1] net sales increased by 7.6% at constant currency rates.
- Adjusted EBITDA EUR 42.6 million (EUR 27.9 million), representing 15.6% (10.5%) of net sales
- Operating profit EUR 32.4 million (EUR 10.6 million)
- Adjusted operating profit EUR 30.7 million (EUR 15.0 million), representing 11.2% (5.6%) of net sales
- Profit before taxes EUR 28.3 million (EUR 6.7 million)
- Earnings per share EUR 0.38 (EUR 0.04)
- Net cash flow from operating activities EUR 26.2 million (EUR 8.4 million)
Major events
- Ahlstrom Corporation and Munksjö Oyj completed the merger to create a leader in sustainable and innovative-fiber solutions. The name of the combined company was changed to Ahlstrom-Munksjö Oyj.
Sakari Ahdekivi, Interim President & CEO of Ahlstrom
”Ahlstrom’s financial accounts show an excellent result as our quarterly adjusted operating profit and margin reached an all-time high in the structure we have had since the beginning of this decade. This was driven by very strong sales growth across all of our business units as well as improved operational efficiency and lower fixed costs.
We were able to achieve a remarkable turnaround in our performance in the last three years and I would like to take this opportunity thank our employees and all our stakeholders for this great achievement. We were able to achieve our financial targets ahead of schedule. This gives us a solid foundation for the future and very good momentum in the integration of Ahlstrom and Munksjö into one company.”
Key figures
| EUR million | Q1/2017 | Q1/2016 | Change, % | 2016 |
| Net sales | 272.7 | 267.2 | 2.1 | 1 085.9 |
| EBITDA | 44.7 | 23.5 | 90.0 | 121.1 |
| % of net sales | 16.4 | 8.8 | 11.2 | |
| Adjustment items included in EBITDA | 2.2 | -4.4 | -9.8 | |
| Adjusted EBITDA | 42.6 | 27.9 | 52.4 | 130.9 |
| % of net sales | 15.6 | 10.5 | 12.1 | |
| Operating profit | 32.4 | 10.6 | 204.9 | 70.8 |
| % of net sales | 11.9 | 4.0 | 6.5 | |
| Adjustment items included in operating profit | 1.8 | -4.4 | -9.8 | |
| Adjusted operating profit | 30.7 | 15.0 | 104.2 | 80.6 |
| % of net sales | 11.2 | 5.6 | 7.4 | |
| Profit before taxes | 28.3 | 6.7 | 56.3 | |
| Profit for the period | 19.6 | 3.5 | 34.9 | |
| Earnings per share | 0.38 | 0.04 | 0.61 | |
| Return on capital employed, % | 25.7 | 8.0 | 13.6 | |
| Net cash flow from operative activities | 26.2 | 8.4 | 210.1 | 125.8 |
| Capital expenditure | 5.1 | 4.6 | 10.8 | 37.9 |
| Interest-bearing net liabilities | 138.2 | 194.9 | -29.1 | 140.8 |
| Gearing ratio, % | 44.5 | 66.5 | 44.6 | |
| Equity ratio, % | 39.3 | 34.9 | 38.2 | |
| Number of personnel, at the end of the period | 3,175 | 3,285 | -3.3 | 3,233 |
Ahlstrom has adopted the European Securities and Markets Authority (ESMA) guidelines on Alternative Performance Measures, which became effective on July 3, 2016. The company uses alternative performance measures to reflect underlying business performance and to improve comparability. These alternative performance measures should, however, not be considered as a substitute for measures of performance in accordance with IFRS.
Ahlstrom has used revised terminology since the beginning of 2016. In accordance, the previously used term “Operating profit excluding non-recurring items” has been replaced by “Adjusted operating profit” and the term “EBITDA excluding non-recurring items” by “Adjusted EBITDA”.
Adjusted items affecting comparability and alternative performance measures used by Ahlstrom are defined:
Adjustment items: restructuring costs, impairment charges, capital gains or losses
EBITDA = Operating profit + depreciation and amortizations + impairments
Adjusted EBITDA = EBITDA – Adjustment items
Adjusted operating profit = Operating profit – Adjustment items
Ahlstrom and Munksjö complete the merger
On April 1, 2017, Ahlstrom Corporation was merged into Munksjö Oyj and the name of the combined company was changed to Ahlstrom-Munksjö Oyj. The combination creates a global leader in sustainable and innovative fiber-based solutions with combined annual net sales of approximately EUR 2.1 billion, approximately 6,200 employees and 41 production and converting facilities in 14 countries. The transaction is expected to create significant value for stakeholders through stronger global growth opportunities and improved operational efficiency. Ahlstrom-Munksjö’s growth ambitions are supported by a strong balance sheet and strong cash flow generation.
Approvals from the Extraordinary General Meetings of Ahlstrom and Munksjö as well as the European Commission were received on January 11, 2017 and March 13, 2017, respectively. In connection with the merger, Ahlstrom and Munksjö distributed funds to the total amount of approximately EUR 46 million, corresponding to EUR 0.49 per share in Ahlstrom and EUR 0.45 per share in Munksjö, in lieu of the companies’ ordinary annual distribution.
Unaudited pro forma financials of Ahlstrom-Munksjö and certain other information, such as composition of the management team can be found in the merger prospectus, published on December 16, 2016.
Outlook
Ahlstrom was merged into Munksjö at the beginning of April 2017, and therefore, it does not provide an outlook for the future.
Short-term risks
Ahlstrom was merged into Munksjö at the beginning of April 2017, and therefore, it does not provide a description of short-term risks. The short-term risks described in Ahlstrom’s Financial Statements Release 2016 can be obtained on the website http://ahlstrom-munksjo.com/Investors/ahlstrom-reports-and-presentations/.
The general risks faced by Ahlstrom’s business operations were described in greater detail in the report by the Board of Directors in the company’s Annual Report for 2016. The risk management process was also described in the Corporate Governance Statement, also published as part of the Annual Report 2016.
Disclosure procedure
Ahlstrom’s Final Accounts Release is published enclosed to this stock exchange release. The report is attached to this release in pdf format and is also available on the web site www.ahlstrom-munksjo.com.
Additional information
Sakari Ahdekivi, tel. +358 (0)10 888 4768
Juho Erkheikki, tel. +358 (0)10 888 4731
[1] Excluding divested operations in Osnabrück, Germany
Ahlstrom-Munksjö in brief
Ahlstrom-Munksjö is a global leader in fiber-based materials, supplying innovative and sustainable solutions to customers worldwide. Our offerings include decor paper, filter media, release liners, abrasive backings, nonwovens, electrotechnical paper, glass fiber materials, food packaging and labeling, tape, medical fiber materials and solutions for diagnostics. Combined annual net sales are about EUR 2.15 billion and we employ 6,200 people. The Ahlstrom-Munksjö share is listed on the Nasdaq Helsinki and Stockholm. The company was formed on April 1, 2017 through the merger of Ahlstrom Corporation and Munksjö Oyj. Read more at www.ahlstrom-munksjo.com.