Sappi Limited released its Q4 and full FY23 financial results for the period ended September 2023

Steve Binnie, Chief Executive Officer, Sappi

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Financial summary for Q4 and full FY23 ended September 2023:

  • EBITDA excluding special items
    • For the quarter US$168 million (Q4 FY22 US$391 million)
    • For the year US$731 million (FY22 US$1,339 million)
  • Profit/Loss for the period
    • Loss for the quarter US$40 million (Q4 FY22 profit US$26 million)
    • Profit for the year US$259 million (FY22 US$536 million)
  • EPS excluding special items
    • For the quarter 6 US cents (Q4 FY22 44 US cents)
    • For the year 52 US cents (FY22 138 US cents)
  • Net debt US$1,085 million (FY22 US$1,163 million)
  • Dividend 15 US cents per share (FY22 15 US cents per share)

Sappi announces satisfactory earnings and declares dividend; releases financial results for fourth quarter and full year

Commenting on the group’s results, Sappi Chief Executive Officer Steve Binnie said: “Following the records achieved in FY2022, I am pleased that we have been able to deliver a satisfactory set of results under particularly difficult circumstances with an EBITDA excluding special items of US$731 million for the year ended September 2023. The widespread disruption caused by ongoing geopolitical instability, weak global economic growth, rising interest rates, and an underperforming Chinese economy negatively impacted markets for our products.

Despite 2023 being one of the most challenging downcycles experienced in the pulp and paper industry, with demand for our paper products falling below that of the Covid-19 pandemic years, we achieved some significant milestones. The South African business delivered record EBITDA and North America the second highest ever EBITDA. The group generated significant cash, which enabled a further reduction of net debt at year-end to US$1,085 million, the lowest level in 30 years.

Amidst the persistently volatile and challenging macroeconomic environment, we demonstrated adaptability and persistence and remained committed to our Thrive25 strategy.”

Looking forward, Binnie stated: “The stronger balance sheet with a significantly reduced debt profile and healthy cash reserves provides us with flexibility to navigate the headwinds of cyclical downturns and positions the business well to deliver on our Thrive25 strategy to reduce exposure to graphic paper markets while investing for growth in our target markets.

Persistent global macroeconomic challenges and generally subdued consumer sentiment continue to impact the demand for many of our products. Notwithstanding the gradual recovery in pulp and paper markets and taking into consideration the impact of the scheduled maintenance shuts, we anticipate that the EBITDA for the first quarter of FY2024 will be below that of the fourth quarter in FY2023.”

You can download and view all of the latest financial results below, alongside our 2022 Annual Integrated Report.

Source: Sappi