SCA - Interim Report Q2 2019

Financial News
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JANUARY 1 – JUNE 30, 2019
(compared with January 1 – June 30, 2018)

  • Net sales increased 14% to SEK 10,304m (9,070), mainly attributable to the continued ramp-up of the expanded Östrand pulp mill.
  • EBITDA rose 31% to SEK 2,900m (2,209). The improvement was mainly related to higher delivery volumes from the expanded Östrand pulp mill and positive exchange rate effects.
  • EBITDA margin increased to 28.1% (24.4).
  • Operating cash flow amounted to SEK 1,245m (1,265).
  • Earnings per share declined to SEK 2.30 (2.57). After adjusting for a non-recurring item in 2018 related to deferred tax, earnings per share increased by 28 percent.
  • The investment to increase white-top kraftliner production at the Munksund paper mill was completed in May. The project was implemented on time and on budget.
  • SCA acquired approximately 30,000 hectares of forest in the Baltic region through three transactions, two of which were closed during the quarter, with closure of the final transaction expected in the third quarter.

APRIL 1 – JUNE 30, 2019
(compared with January 1 – March 31, 2019)

  • Net sales rose 3% to SEK 5,228m (5,076), which mainly related to higher delivery volumes for Pulp, Kraftliner and Wood.
  • EBITDA amounted to SEK 1,340m (1,560). Adjusted for the effect of planned maintenance stops of SEK  -63m (0) and the positive contribution from restructuring in the French wood business in the first quarter of SEK 0m (90), earnings declined by 5%. The decrease was mainly explained by lower selling prices.
     

COMMENTS ON THE FINANCIAL STATEMENTS 

Operating profit for the second quarter of 2019 improved year on year, but declined compared with the preceding quarter. The expanded Östrand pulp mill has now reached about 90% of the expected production capacity and work to ramp up the plant toward full capacity is progressing according to plan. Pulp production increased 22% compared with the preceding quarter, which made a positive contribution to earnings. 

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Source: SCA

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