Metsä Tissue's sales down but the overall performance improved during 2009 first quarter
22/04/2009 Metsä Tissue's sales down but the overall performance improved during 2009 first quarter
The sales of Metsä Tissue, a supplier of tissue and cooking papers, totalled EUR 218 million (230) and operating profit EUR 19 million (9). During the first quarter of 2009, sales dropped by about five per cent over the previous year. The reduction in sales resulted from lower sales volumes (-3%) and exchange rate fluctuations (-2%). The sales of company's own brands increased by three per cent over the previous year. The operating profit grew by EUR 10 million. Both the efficiency improvement projects and decreased raw material costs contributed to the improved operating profit. Fluctuations in exchange rates, especially the weaker Swedish crown and UK pound, had a negative impact on sales and operating profit. Metsä Tissue launched the Lambi Limited Collection concept in Scandinavia, the Baltic countries, Eastern Europe and Russia. The design patterned household and toilet papers continued to strengthen Lambi's position in the highest quality segment of tissue papers. In addition to consumers, the concept has also aroused interest among the trade and in the media. The logo and packaging of the Tento brand were renewed. Three product categories - Eko, Classic and Feel Good - were established for the brand, and a new Tento Herbal Sensitive product was launched in the Feel Good category. The Katrin brand launched new product solutions: the Katrin Hand Care Programme, especially designed for the workplace, and the Katrin specialty wipes for industrial cleaning, polishing and wiping. The construction project resulting from the fire at the finished goods warehouses at the Zilina mill a year ago was completed. The new and more efficient premises were inaugurated. During the first quarter, a job satisfaction survey was carried out at Metsä Tissue. On the basis of the survey outcome, regional action plans will be drawn up. The current economic crises has not significantly affected the demand for tissue and cooking papers. The growth has, however, slowed down in developing markets, in particular. The rapidly decreasing raw material costs seem to have reached their bottom during the first quarter of the year. Metsä Tissue will continue to invest in product development and its own brands and aims to increase their sales. Furthermore, private labels will be supported by innovative campaign products. Enhancing the efficiency of business and production will also be continued, as will the development of business operations in Eastern Europe. Metsä Tissue QI/09 QI/08 QI-IV/08 Sales 218 230 930 EBITDA 29 25 98 - ” -, excl. non-recurring items 29 25 99 Depreciation and impairment -10 -16 -56 Operating result 19 9 42 - ” -, excl. non-recurring items 19 9 44 Investments 4 3 33 Personnel at end of period 3 204 3 284 3 222