Solid results and further forward-looking investments
• Q2 consolidated sales revenue amounted to PLN 839.2mn (EUR1 194.4mn).
• Adjusted EBITDA in Q2 was PLN 78.4mn (EUR1 18.2mn).
• EBIT in Q2 was PLN 41.8mn (EUR1 9.7mn) and net profit PLN 24.2mn (EUR1 5.6mn).
• Net debt at PLN -142.1mn (PLN -134.1mn).
• A dividend of PLN 1,0 per share was distributed according to the dividend policy.
• 17 MW expansion of PV-farm in Kostrzyn completed: plans to add another 9 MW in Q1, 2025.
• Reorganization of sales & customer service ongoing, saving PLN 15mn with full effect in 2025.
• One-off events (sales transformation & receivables write-off) charged EBITDA by PLN 8mn.
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.
Source: Artic Paper
