Sappi delivered excellent results during the second financial quarter 2022

Commenting on the group’s results, Sappi Chief Executive Officer Steve Binnie said: “I am very proud of the excellent performance during the quarter particularly in light of the impact of Covid-19 in the last two years and the global economic turmoil. Tight global paper markets were the principal factor behind the quarter’s success and enabled the implementation of higher selling prices which offset extraordinary cost inflation. The Russian-Ukrainian conflict triggered renewed volatility in global commodity markets and further disrupted already constrained global supply chains, which intensified cost inflation across all regions and all product segments.

Despite these headwinds we were able to improve EBITDA by 40% on the prior quarter from US$240 million to US$337 million and three-fold over the equivalent quarter in 2021. Net debt was reduced to US$1,793 million (from US$2,070 million a year ago) and earnings per share excluding special items for the quarter was 35 US cents, a further improvement on the 20 US cents in the prior quarter, providing further evidence of the steadily improving profitability of the group.”

Looking forward, Binnie stated: “In light of the favourable operating environment, the group is in a strong position to maintain the recent momentum and the underlying EBITDA for the third quarter should be consistent with that of the second quarter subject to the impacts of the annual maintenance shuts.”

Financial summary for the quarter:
• EBITDA excluding special items US$337 million (Q2 FY21 US$112 million)
• Net debt of US$1,793 million (Q2 FY21 US$2,070 million)
• Profit for the period US$188 million (Q2 FY21 loss of US$23 million)
• EPS excluding special items 35 US cents (Q2 FY21 loss of 1 US cents)
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