BillerudKorsnäs reported results for the first quarter 2015. Highlights from the first quarter includes:
- Net sales was SEK 5 634 million (5 410)
- Earnings per share was SEK 2.38 (1.75)
- Operating profit increased with 29% compared to the same period previous year to a record high SEK 698 million (541).
- Net debt has been reduced with SEK 734 million from previous quarter to SEK 6 390 million due to a very strong cash flow.
Demand and orders situation for the second quarter is expected to be stable with normal seasonal variances for all business areas.
Comments by BillerudKorsnäs' CEO Per Lindberg:
"We are proud to report our best quarter so far in our short history as BillerudKorsnäs. Our operating profit in the quarter reached a level of SEK 698 million and the operating margin was over 12%."
"The financial performance for the first quarter this year was very strong. On top of a very strong operating result, our operating cash flow was excellent, SEK 733 million, and we have further improved our net debt/equity ratio which is now down to 0.57. Return on capital employed is improving and closing in on our 13% target, but still rounded to 11% and hence we are above all our financial targets except ROCE. Of course, no planned maintenance shutdowns and a weakened SEK had a significant positive impact on the quarter, but I am still very pleased. The one area where we in Q1 fall a little short is volume growth as compared to last year. But keeping in mind that the beginning of last year was exceptional and that production and delivery volume ramp-up rarely is linear, I am still confident in our ability to reach our longer-term growth targets."
"The overall market has been stable during the quarter. We expect the stability to continue with quite good demand and little changes in local prices. The pulp price in USD seems to have peaked, but the relative strength of the USD versus other currencies have compensated for the USD nominated price fall.
"The relatively high pulp price contributes both to stability and to our own profitability. However, the high pulp cost pressures unintegrated production capacity in the Euro-zone and Sweden. We also see some competitors being forced to take action due to profit squeeze. Meanwhile, and on the balance, we now have a slightly more positive market outlook for our business areas Packaging Paper and Containerboard than we previously expected, whereas the Consumer Board market continues to be stable.”
