Ahlstrom January–June 2024 financial results published
AHLSTROM OYJ, PRESS RELEASE, JULY 29, 2024, at 13:00 EEST
Ahlstrom Holding 3 Oy has today published its January–June 2024 financial report. The report is available at www.ahlstrom.com/investors.
Helen Mets, President and CEO, comments on second quarter 2024:
Ahlstrom delivered another strong performance in Q2. Our profitability improved once again, while cash flow remains solid. Obsessed with our customers and the markets we serve; we launched several innovative new products − including fluorochemical-free filtration and paper-based pet food materials − to meet the growing need for safe and sustainable solutions. We also refined our strategy and streamlined our organization to accelerate our growth transformation. In addition, our Q2 pulse survey showed an increase in employee engagement. The latest engagement score places Ahlstrom close to the level of the top 10% of companies in the manufacturing industry. I am proud of the progress that we continue to deliver.
Increased profitability and continuation of solid cash flow
During the second quarter, market activity continued to strengthen. Adjusted for Stenay divestiture deliveries increased compared to both the previous quarter and the previous year. Comparable EBITDA also grew, supported by an increasingly strong margin on variable cost per ton. This improvement can be attributed largely to our transformation initiatives, including disciplined price management and cost efficiency measures. Overall, cash flow remained solid, supported by the higher profitability, efficient working capital management, and sustainable lower capital expenditure.
Simplified structure to accelerate growth
As part of our ongoing transformation, we have implemented a refined growth strategy and simplified our divisional structure. I am happy to say that during the quarter we completed our leadership team composition, expanding the role of our Chief Innovation Officer, Konraad Dullaert, to include the leadership of our Food and Consumer Packaging division. This division is now set to spearhead the transition from single-use plastics to sustainable packaging alternatives through innovative barrier solutions and other high-performance materials. All three divisions of the company are aligned to long-term growth trends and are well positioned for profitable growth.
Building operational strength
Efforts to align our assets and portfolio with market demand also continued in Q2. The ramp up of our glass fiber tissue line in Madisonville, Kentucky, is proceeding, and we are supplying commercial products to customers in the building and construction industry. We also completed the consultation process at our plant in Bousbecque and will consolidate parchment production at the Saint-Severin site, in France. Minimizing the impact of the closure for our Bousbecque employees is a priority.
A look ahead
As we look ahead, I am confident that our commitment to sustainability and innovation will continue to drive our growth. With a refreshed strategy, a simplified organizational structure, and a team of highly engaged employees, our transformation is well on track. I would like to express my gratitude to our employees, customers, and partners for their continued support and collaboration. Together we are building a better world and are shaping the future of sustainable specialty materials. I am excited about the opportunities ahead.
Earnings call for investors on July 29, at 16:00 EEST
A live audiocast and teleconference will be arranged today, July 29 at 16:00 EEST (15:00 CEST). The event will be hosted by President and CEO Helen Mets, and CFO Niklas Beyes.
Questions to the management can be asked either via the chat box in the audiocast or in person by phone in the conference call.
Audiocast registration link:
https://ahlstrom.videosync.fi/q2-2024
Teleconference registration link:
http://palvelu.flik.fi/teleconference/?id=10013186
After the registration to the teleconference, the participant will be provided with phone numbers and a conference ID to access the call. To ask a question, press *5 on your telephone keypad to enter the queue.
By joining audiocast or teleconference, the participant agrees that personal information such as name and company name will be collected. The event will be recorded.
Additional information:
Johan Lindh, Vice President, Investor Relations, + 358 10 888 4994, johan.lindh@ahlstrom.com
Ahlstrom in brief
Ahlstrom is a global leader in combining fibers into sustainable specialty materials. Our purpose is to Purify and Protect, with Every Fiber, for a Sustainable World. Our vision is to be the Preferred Sustainable Specialty Materials Company for all our stakeholders. Our three divisions, Filtration and Life Sciences, Food and Consumer Packaging, and Protective Materials, address global trends with safe and sustainable solutions. Our net sales in 2023 amounted to EUR 3.0 billion and we employ some 7,000 people. Read more www.ahlstrom.com