“Earnings per share increased sequentially in the second quarter, a trend we expect to continue in coming quarters,” said Mitch Butier, Chairman and CEO. “Volumes in our Materials businesses continue to recover from slow market conditions, largely destocking, while our Intelligent Labels platform accelerates adoption into new categories. "While it's good to see the continuing sequential improvements in our Materials businesses and the building momentum in Intelligent Labels, the pace of our recovery is slower than anticipated. Our results for the quarter were below our expectation due to lower revenue, something the team was able to largely offset through cost reduction actions,” Butier added.
For the first quarter ended 31 March 2021 Lecta had revenue of €270.8 million versus €316.6 million in the first quarter ended 31 March 2020, a decrease of €45.8 million or -15%. This decrease was essentially attributable to COVID-19 pandemic:
• Lower sales of CWF, Specialties and Purchased Products of €46.9 million or -16%, from €299.3 million in 1Q2020 to €252.4 million in 1Q2021, resulting from lower sales volumes of 35,100 metric tonnes or -12%, with 264,900 metric tonnes in 1Q2021 vs 300,000 metric tonnes in 1Q2020, and a decrease in average net sales price of 45€/t or -4.5%, with 953€/t in 1Q2021 vs 998€/t in 1Q2020; and
• Higher sales of energy of €1.1 million or +6.5%, from €17.3 million in 1Q2020 to €18.4 million in 1Q2021, resulting from lower sales volumes of 19,400 MWh or -6%, with 290,300 MWh in 1Q2021 vs 309,700 MWh in 1Q2020, and an increase in average net sales price of 8€/MWh or +14%, with 63€/MWh in 1Q2021 vs 56€/ MWh in 1Q2020.
Raw Materials and Consumables Used
The costs of raw materials and consumables used decreased by €14.3 million, or -9.1%, from €156.0 million in 1Q2020 to €141.7 million in 1Q2021, and as a percentage of revenue they increased from 49.3% in 1Q2020 to 52.3% in 1Q2021. The absolute decrease was mainly attributable to lower purchased volumes, and to an increase in the average consumption price of pulp of 5€/t.
EBITDA decreased by €14.7 million, or -61%, from €24.2 million in 1Q2020 to €9.5 million in 1Q2021. This decrease was essentially due to lower sales of paper in volume. It was also due to lower sales prices, lower margin on unit variable costs, and nearly stable fixed costs.
further details at: https://cmspro.lecta.com/DownloadAreaDocuments/LectaLtd_Q1_2021_Interim_Report.pdf