Redeye: Bong - Strong packaging growth but margin squeeze in envelopes

The third quarter was very much in line with our estimates in terms of total sales and earnings. Sales increased by 9 percent Y/Y, mainly thanks to currency tail winds. EBIT of SEK 12 million is a significant improvement Y/Y. Compared to earlier this year, EBIT-level is virtually unchanged. Bongs Light Packaging recorded surprisingly strong sales growth in the quarter: 22 percent and 14 percent adjusted for currency effects. In the envelope business paper prices are still on the rise putting pressure on gross margins.

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This is a press release from Redeye - Research Powered Investment Banking. https://www.redeye.se/about/