Water is one of the world’s most precious resources, and is inextricably linked to combating climate change. According to the UN, 2.2 billion people worldwide lack safe drinking water and the responsible use of water will help reduce floods, droughts, scarcity and pollution. As a leading manufacturer of packaging and paper, water is vital to our global operations and responsible water stewardship is central to how we do business. Since 2014 we have promoted a landscape approach to water stewardship, working together with farmers, local government, and industries, who all share a common interest in maintaining freshwater ecosystems and services.
“BillerudKorsnäs has an incredible opportunity at the sweet spot of trends supporting a growing demand for our renewable, high-quality products made of primary fibres. We have developed a strategic direction around how to reach a profitable and sustainable revenue growth to 2030,” comments Christoph Michalski, President and CEO.
Sustainable growth in packaging materials
BillerudKorsnäs’ new strategy focuses on attractive markets with good growth opportunities and product segments where the company has a strong ability to compete.
• Whilst Europe will remain the main market, new business opportunities will be explored, specifically for paperboard in the Americas.
• To maximise the organic growth opportunity operational efficiency will be critical. Therefore, the annual investments in mill maintenance and development are expected to reach SEK 1.5-1.7 billion until 2025.
• Possibilities to increase production capacity at the group’s existing facilities or via acquisitions will be evaluated.
• Transformation towards a professional sourcing organisation for wood supply is an integral part of the strategy with the aim to build long term partnerships to secure a competitive fibre availability.
• Additional structural savings under the current cost and efficiency programme is estimated to amount to SEK 130 million during 2022.
The financial targets are largely unchanged:
- Net sales growth of 3-4% per year (unchanged)
- The EBITDA margin above 17% (unchanged)
- The ratio of interest-bearing net debt to EBITDA below 2.5 (unchanged)
- Dividends at least 50% of the net profit (previously 50%)
- A target for return on capital employed has been suspended given the heavy investment programme over the last years