E-commerce has forever changed the way people shop, and now recycled containerboard will change the way products are delivered. While online shopping is always popular during the holiday season, it has increased even more this year, amidst the COVID-19 pandemic. With millions opting to avoid in-person shopping, research firm Forrester expects that online retail sales will grow 24 percent in the United States this holiday season, compared to a year ago. At the same time, shoppers are seeking responsibly packaged products. A report on 2020 U.S. packaging preferences from Two Sides North America Inc. showed consumers prefer paper-based packaging for its environmental attributes, such as recyclability and composability, as well as practical factors like ease of storage. The report also found that consumers are willing to pay more for a sustainably packaged product and will deliberately avoid those that aren’t. click read more below for the rest of the story
SCA decided in September 2020 to discontinue its publication paper operations in line with the communicated strategy for profitable growth. During the quarter, SCA closed the three remaining publication paper machines at the Ortviken site.
Measures continue to be taken to avoid the spread of Covid-19. The pandemic has not had any significant effects on production.
JANUARY – MARCH, 2021 (compared with January – March 2020)
*Net sales amounted to SEK 4,172m (4,793). The lower sales level was related to the discontinued publication paper operations and the divestment of Wood Supply UK, excluding this effect net sales increased with 8%.
*EBITDA improved 32% to SEK 1,359m (1,030), the increase was mainly attributable to higher selling prices in all product areas. EBITDA margin increased to 32.6% (21.5), the higer level was mainly related to the discontinued publication paper operations.
*Operating profit increased to SEK 1,046m (628)
*Operating cash flow amounted to SEK 475m (341)
*Earnings per share improved to SEK 1.14 (0.69)
JANUARY – MARCH, 2021 (compared with October – December, 2020)
*Net sales decreased by 9% to SEK 4,172m (4,592). The change was mainly attributable to the discontinued publication paper operations and the divestment of Wood Supply UK.
*EBITDA amounted to SEK 1,359m (1,451) and EBITDA margin rose to 32.6% (31.6)
SUMMARY OF THE FIRST QUARTER OF 2021
Earnings for the first quarter of 2021 were in line with the preceding quarter and represent a significant improvement on the year-earlier quarter. Higher selling prices in all product areas had a positive impact on earnings.
During the quarter, SCA discontinued its remaining publication paper operations consisting of three paper machines at the Ortviken site. Following the discontinuation of publication paper operations, SCA is focused on growth in all product areas.
The supply of wood to SCA’s industries was stable during the quarter. The price of pulpwood fell slightly while the price of sawlogs remained stable compared with the preceding period.
The market situation for solid-wood products continued to strengthen during the quarter, driven by high global demand in the building materials trade and an increased level of new construction. Sustained strong demand has led to low inventory levels and higher market prices in all regional markets.
During the quarter, the market for pulp strengthened further and selling prices increased. Delivery volumes rose slightly compared with the preceding quarter. Global inventory levels were normal.
Demand for kraftliner was highly favorable during the quarter, driven by higher box demand. The average selling price was also higher than the preceding quarter.
SCA’s ongoing investment projects – to expand kraftliner manufacturing in Obbola and increase production of chemically pre-treated mechanical pulp (CTMP) at the Ortviken industrial site – are progressing on time and on budget.
details at: https://www.sca.com/en/about-us/Investors/press-releases/2021-04/interim-report-q1-2021/