Billerud Interim report January–March 2023

Key highlights Q1
Organic and currency-neutral sales growth of 6%
*Market-related downtime in several mills due to customers’ destocking and expectations of weaker market conditions
*Prices increased for liquid board and speciality paper, were stable for graphic paper and cartonboard, and decreased for other product categories
*All-time high input costs

Quarterly data Q1
*Net sales increased by 55% to SEK 11,495 million (7,397), whereof Billerud North America accounted for SEK 3,311 million (–)
*Operating profit was SEK 806 million (1,189)
*Net profit was SEK 639 million (884)

Comments by the CEO:
Since the beginning of March, there has been a blastomycosis infection outbreak that has impacted the Escanaba mill and we are all deeply saddened that a person who worked as a contractor at the mill has died from the disease. Since first notified by the local public health department, we are cooperating with all available health resources and have taken their recommended actions. On 13 April we proactively decided to temporarily idle the Escanaba mill for up to three weeks as a precaution and to perform additional cleaning of the facilities. Our top priority is the health and safety of our employees and contractors.

The first quarter organic and currency-neutral net sales grew by 6% compared to the corresponding period last year, mainly because of higher sales prices. Our sales volumes were negatively impacted by customers’ destocking due to an inventory-build in the downstream value chain, as well as lower demand for some product categories.

The Group’s first quarter result and EBITDA margin was dampened by temporary elevated costs for raw materials in combination with the challenging market conditions with slower demand. The regions Europe and North America continued to show different margin profiles mainly due to historically high wood prices in Europe.

From the start of 2023 we have implemented price increases in our liquid packaging board, which in the first quarter could not offset the increasing wood costs. The market conditions for our other product categories have been challenging during the first months of 2023. We have adjusted by taking market-related production downtime in several mills. In the first quarter, prices increased for speciality paper and were resilient for graphic paper, while market prices for kraft liner, sack paper and pulp have decreased in recent months.
details at: https://www.billerud.com/globalassets/cision/documents/2023/20230426-interim-report-januarymarch-2023-en-0-4524777.pdf

Related Posts

Metsä Group’s comparable operating result in January–September 2023 was EUR 431 million

January–September 2023 (1–9/2022) *Sales were EUR 4,624 million (5,239). *Operating result was EUR 443 million (986). Comparable operating result was EUR 431 million (966). *Result before taxes was EUR 438 million (961). Comparable result before taxes was EUR 430 million (934). *Comparable return on capital employed was 8.3% (20.0). *Net cash flow from operations was EUR 487 million (828). July–September 2023 (7–9/2022) *Sales were EUR 1,509 million (1,823). *Operating result was EUR 41 million (397). Comparable operating result was EUR 51 million (391). *Result before taxes was EUR 49 million (396). Comparable result before taxes was EUR 60 million (385). *Comparable return on capital employed was 3.2% (23.5). *Net cash flow from operations was EUR 469 million (372).

Stora Enso divests its sawmills and forest operations in Russia

Stora Enso has entered into an agreement to divest its two sawmills in Russia. The Company’s Nebolchi and Impilahti sawmills will be divested to local management. In addition, the divestment includes Stora Enso’s Russian forest operation which through its harvesting supplies wood to the sawmills. Stora Enso’s assessment is that due to the uncertainties in the Russian market, local ownership and operation can provide a more sustainable long-term solution for these business operations and the employees working there. The transaction is, pending necessary approvals, expected to be concluded within Q2 2022 and will have no material impact on Stora Enso’s annual sales and Operational EBIT. Due to decreased business prospects on these businesses, an impairment loss of EUR 70 million has been recorded in the first quarter result. The additional loss on the transaction under IFRS will be approximately EUR 60 million, consisting mainly of currency translation adjustments to be recorded at the closing date. The expenses are considered as items affecting comparability.
Back To Top
×Close search
Search