Arctic Paper Group After 3rd Quarter of 2017: Results Influenced by Further Increase in Pulp Prices
In the 3rd quarter of 2017 the Arctic Paper Group generated sales revenue of nearly PLN 735.9m. EBITDA was PLN 70.8m and operating profit PLN 38.5m. The Group’s net profit on continuing operations in Q3 2017 was PLN 25.6m.
The weaker results of Arctic Paper in the 3rd quarter were due primarily to the effect of a further increase in pulp prices which has not been fully offset yet by higher paper prices. The result was also affected by the planned stoppage at the Arctic Paper Kostrzyn plant for 12 days in July of this year, connected with an investment to increase the production efficiency at that plant.
Per Skoglund, CEO of Arctic Paper, commented: “The decline in profit is mainly due to continued high pulp prices, which we will not be able to fully compensate for by price increases during 2017. On top of that, a planned investment stoppage in Arctic Paper Kostrzyn affected sales and profit during the period. The investment in increased production efficiency will have a future positive impact and strengthen our ability to serve our customers in a competitive way.”
Through the first three quarters of 2017, the Arctic Paper Group generated sales revenue of over PLN 2.2bn. EBITDA was PLN 210.8m and operating profit nearly PLN 115.7m. The Group’s net profit on continuing operations in the first three quarters of 2017 rose 9.2%, to PLN 75.5m.
Per Skoglund added: “During the period we initiated a strategy review in order to clarify which products and markets we will focus on to achieve sustainably higher profitability. Work began during Q3 and we expect to launch and present the new strategy in first half of 2018.”
Results in the paper segment (excluding Rottneros)
In Q3 2017, the Arctic Paper Group generated sales revenue in the paper segment of PLN 542.3m, EBITDA of PLN 38.9m and operating profit of PLN 18.7m. The Group’s net profit on continuing operations in Q3 2017 was PLN 12.9m, and net profit over PLN 11.1m.
The average use of production capacity was 98.0%, up 2.7 pp year-on-year.
The Group’s sales revenue in the paper segment through the first three quarters of this year was nearly PLN 1.6bn. EBITDA was PLN 104.7m and operating profit PLN 44.4m. The Group’s net profit on continuing operations through the first three quarters of 2017 was PLN 38.9m.
Results in the pulp segment (Rottneros)
The Group’s results in the pulp segment in the 3rd quarter of 2017 were still solid, and profit and margins remained at a good level. Changes in prices of the pulp produced by Rottneros (NBSK) were advantageous for the company. Meanwhile, investments carried out in the Agenda 500 program allow for high production volumes.
more detail at: http://www.arcticpaper.com/Global/News%20Global/ENG/Corrected%20version_Arctic%20Paper%20Q3%202017%20PR_EN_Final.pdf