Sequana’s 1Q 2017 sales were Euro 744 million, down 0.6% on 1Q 2016 (but up 0.9% at constant exchange rates) at a constant reporting structure for Arjowiggins (down 3.4% on a reported basis).
The decline in printing volumes which continued during the 1Q weighed on the Group’s sales both on the production and distribution sides of the business, mainly in the Creative Papers division which was affected by inventory reduction measures taken in the market during the early months of the year.
1Q 2017 EBITDA grew 7.3% on 1Q 2016 to Euro 27 million at a constant reporting structure for Arjowiggins (up 3.5% on a reported basis). Sequana benefited from an enhanced product mix and the positive impact of lower overheads resulting from the closure of Arjowiggins mills, as well as from the optimisation of Antalis’ supply chain.
However, declining volumes of printing papers and higher prices for cotton (used to produce banknote paper) had a negative impact on Group operating performances. EBITDA improved by 0.3 points and represented 3.6% of sales.
Recurring operating income jumped by 39.4% to Euro 19 million, compared to Euro 14 million in 1Q 2016. It includes a Euro 2 million gain arising on a change to a pension plan carried on Antalis’ books.
Sequana is a major player in the paper industry, boasting leading positions in each of its two businesses Antalis and Arjowiggins.
