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However, profits still sank. In the midst of a market slowdown, the situation was saved by customers’ destocking and rising prices for liquid packaging board and specialty papers. The company expects the trend to continue in Q2
“For the second quarter, we expect the challenging market conditions to continue,” comments Christoph Michalski, Billerud‘s President and CEO.
“The destocking will continue in the second quarter, but we expect the destocking cycle to end in the second half of the year. There is a downside risk to prices and sales mix.
“On the cost side, we anticipate that the inflation will start to ease in the second quarter. Chemical prices are on the way down, following the drop in energy prices, and from May we have new logistics contracts with better price terms.”
Key results for Billerud in Q1/2023
- Net sales increased by 55% to €1017.2m (€654.56m in Q1/2022), whereof Billerud North America accounted for €293m
- Adjusted EBITDA was €131.32m (€147.25m), whereof Billerud North America accounted for €55.57m
- The adjusted EBITDA margin was 13% (22)
- Operating profit was €71.32m (€105.22m)
- Net profit was €56.55m (€78.23m)
Outlook for Q2
- Continued weak market conditions due to destocking at customers and slower demand
- Lower volumes on the back of production adjustments and mill stoppages
- Most input cost inflation expected to ease
- Expectations of increased price pressure
- The impact of temporarily idling the Escanaba Mill (due to a blastomycosis infection outbreak) is estimated to €8.7–13m (EBITDA)
gofro.expert
