Arctic Paper recently reported results for the second quarter of 2024.
Michal Jarczyński, CEO of Arctic Paper S.A, commented the report.
”The second quarter, normally a weaker quarter, was this year affected by the slow recovery in key European markets and by historically high raw material prices. Arctic Paper´s revenues reached PLN 839.2 million (836.2 million), while adjusted EBITDA improved to PLN 78.4 million (68.9) with the corresponding EBITDA margin of 9.3 percent (8.2). Arctic Paper´s financial position was further strengthened, and the net debt/EBITDA-ratio reached -0.35 (-0.19). During the period, continued investments were made in line with our long-term strategy to diversify the Group’s operations”.
”For the paper segment, revenue was PLN 573.1 million (566.7 million). The fragile recovery we saw in the paper market in the first quarter of the year slowed down, especially in the important German market. Adjusted EBITDA reached PLN 49.6 million (47.6 million). We continue to focus on defending our margins, although raising prices to offset the higher cost of pulp is challenging. As a result of these efforts, the EBITDA margin increased slightly to 8.6 percent (8.4), while our income per tonne decreased to at PLN 5.04k (5.85k), the latter mainly due to currency effects from a stronger zloty. During the period, Arctic Paper started a modernization of its paper sales and customer service organization to increase efficiency. The change is estimated to result in annual savings of approximately PLN 15 million with full effect in 2025.”
”The pulp segment – Rottneros – delivered a better result as the production-related challenges that hampered the first quarter have been delt with. The pulp market continued to move in the right direction with clear price increases, at the same time as rising pulpwood prices squeezed the margin. Net sales rose to SEK 711 million (681) with an EBITDA result of SEK 65 million (71). Rottneros continued its ambitious investment program to expand both CTMP capacity and renewable energy production.”