Billerud has published its Interim report January–March 2023.
Net sales increased by 55% to SEK 11,495 million (7,397), whereof Billerud North America accounted for SEK 3,311 million. Adjusted EBITDA was SEK 1,484 million (1,664), whereof Billerud North America accounted for SEK 628 million. The adjusted EBITDA margin was 13% (22). Operating profit was SEK 806 million (1,189). Net profit was SEK 639 million (884).
CEO Christoph Michalski commented the report:
“Since the beginning of March, there has been a blastomycosis infection outbreak that has impacted the Escanaba mill and we are all deeply saddened that a person who worked as a contractor at the mill has died from the disease. Since first notified by the local public health department, we are cooperating with all available health resources and have taken their recommended actions. On 13 April we proactively decided to temporarily idle the Escanaba mill for up to three weeks as a precaution and to perform additional cleaning of the facilities. Our top priority is the health and safety of our employees and contractors.”
“The first quarter organic and currency-neutral net sales grew by 6% compared to the corresponding period last year, mainly because of higher sales prices. Our sales volumes were negatively impacted by customers’ destocking due to an inventory-build in the downstream value chain, as well as lower demand for some product categories”.
“For the second quarter, we expect the challenging market conditions to continue. The destocking will continue in the second quarter, but we expect the destocking cycle to end in the second half of the year. There is a downside risk to prices and sales mix. On the cost side, we anticipate that the inflation will start to ease in the second quarter. Chemical prices are on the way down, following the drop in energy prices, and from May we have new logistics contracts with better price terms.”