Arctic Paper S.A. Q1, 2018:A satisfactory result in a challenging market environment
• Q1 sales revenue amounted to PLN 789,7mn (EUR1 188,9mn).
• EBITDA Q1 amounted to PLN 71,2mn (EUR1 17,0mn).
• EBIT Q1 was PLN 47,2mn (EUR1 11,3mn).
• Continued high pulp prices affected the result of the period.
• Decision was taken to invest PLN 29m (EUR 7m) in an expansion of the hydro power plant at the Munkedal mill.
• New strategy for the paper segment being implemented to reach the financial goal of EBIT 10 percent by 2022.
During the first quarter of 2018, Arctic Paper Group had a turnover of PLN 789,7 million (compared to PLN 773,9 million in Q1, 2017) with an EBITDA of PLN 71,2 million (75,5 million). The paper segment generated a turnover of PLN 573,6 million (575,1 million) with an EBITDA of PLN 31,1 million (39,1 million).
The continued rise in pulp prices is putting pressure on the margins. However, during the period price increases have been implemented that partially compensate for the increase in costs, and we are planning for further prices increases. Developments in the exchange rate between the euro, dollar and Swedish krona has mainly been positive for the paper segment.
The result of the period was affected by production disturbances at the mill in Grycksbo, occurred during the commissioning of paper machine PM10 after a planned maintenance and investment stoppage. This year Easter fell in the first quarter, which also contributed to reduced sales in this period.
Production amounted to 169,000 tonnes (176,000), with a more favourable product mix increasing the sales volume of our premium brand Munken during the period. A decision has been taken to invest EUR 7 million in the hydropower plant at Munkedal, which strengthens our sustainability profile and competitiveness.
For Rottneros AB, of which the Arctic Paper Group owns 51 percent, net turnover increased by 15 percent to SEK 541 million (472 million) and EBITDA by 31 percent to SEK 101 million (77mn). The full report is available at http://www.rottneros.com/investors/financial-reports/
The past quarter demonstrates again the benefits of combining our paper operations with our ownership in the pulp producer Rottneros AB. The result of this quarter confirms that we are on the right track. It is now important that we continue in line with our strategy to strengthen the profitability of our paper segment.
Per Skoglund, CEO of Arctic Paper S.A.
Further information provided by:
CEO, Arctic Paper S.A.
Tel. (+46) 31 63 1703
CFO, Arctic Paper S.A.
Tel. (+46) 72 732 5054
Arctic Paper S.A. is one of the leading producers of high-quality graphical fine paper in Europe and consists of three paper mills and four eco-friendly strong brands, Amber, Arctic, G-Print and Munken. Most of the products are sold through the company’s 14 sales offices in Europe. Arctic Paper S.A. is listed on the Warsaw Stock Exchange and NASDAQ in Stockholm. The Group is the main owner of the listed Swedish pulp producer Rottneros AB. For more information, visit arcticpaper.com