Good demand and strong sales performance in all divisions
Solid result despite high fibre costs
Ramp-up of KM7 has started and is proceeding according to plan
Process of finding suitable investors for Bergvik Öst is ongoing
Net sales were SEK 6 504 million (5 897), an increase of 10%, mainly as a result of higher sales prices and positive currency effects.
Adjusted EBITDA* was SEK 1 035 million (1 102), a decrease of 6%.
Operating profit was SEK 640 million (677), a decrease of 5%.
Net profit was SEK 451 million (498), a decrease of 9%.
Earnings per share amounted to SEK 2.18 (2.40).
Continued good demand for our products.
Increased price pressure is expected – focus is on safeguarding current price levels.
Total cost for fibre expected to flatten out at a high level
COMMENTS BY CEO
“I am very pleased to announce that the ramp-up of KM7 at Gruvön is proceeding according to plan and test-runs of the machine are now ongoing”
The first quarter was marked by continued good demand and stable prices for innovative and sustainable packaging in our selected product areas. Strong sales performance combined with positive effects from currencies and renegotiated long-term contracts increased net sales by 10% in the quarter, which is well above our financial target of 3-4%.
I am very pleased to announce that the ramp-up of KM7 at Gruvön is proceeding according to plan and test-runs of the machine are now ongoing. This 550,000 tonnes board machine is one of the most modern production facilities in the world and makes BillerudKorsnäs well positioned to meet the increasing demand for sustainable packaging solutions. We reiterate that the structural changes in connection to the ramp-up of KM7 will have a negative effect on EBITDA of approximately SEK 500 million during 2019 and SEK 200 million during 2020. Following this short-term impact, the investment will have a positive earnings contribution from 2021.
A comprehensive safety programme based on best practise has been launched and the entire company is now working to prevent accidents and eliminate risks with a zero injury vision in mind. I truly believe that a safe company is a well-run company. Therefore, our safety-first initiative, together with the production excellence programme are the main focus areas for BillerudKorsnäs. On the back of this, we see good opportunities to increase production stability and volumes in 2019 compared with last year.
more detail at: https://www.billerudkorsnas.com/media/press-releases/2019/interim-report-january–march-2019