Sequana reports a net loss of €80 million during the first half year 2014.This includes €77 million in net non-recurring expenses essentially attributable to restructuring measures announced in April.
Sequana has more than doubled its net loss in the first half of the year. The operating result was negative as well at -€35m, down from a profit of €3m in the first half last year.
Sales were up 2.7% to €1,720 million, reflecting the improved product mix and the impact of changes in Group structure resulting from the acquisition of Xerox’s office paper distribution business.
Commenting on the half-year results, Sequana’s Chairman and Chief Executive Officer Pascal Lebard said: “The improvement in our operating performance in the first half driven chiefly by an improved product mix and lower input costs is encouraging for our Group, which has just completed an important phase in its strategic plan. Sequana’s successful recent rights issue will help strengthen Arjowiggins’ capital and, alongside its financial restructuring, will ensure the company has a healthy, viable long-term balance sheet and financing for its transformation plan. This plan will have a positive impact on the Group’s performance as from the second half of 2015.”
EBITDA totalled €68 million versus €62 million in first-half 2013, representing 4.0% of sales (up 0.3 points). This improved performance chiefly reflects favourable trends in the product mix, the decrease in overheads relating to Antalis’ restructuring operations in Europe, and the fall in input costs – essentially pulp and energy.
