Munksjö Oyj's Interim Report for January-June 2015: Stable profitability development despite increased short fibre pulp prices
Munksjö Oyj's Interim Report for January-June 2015: Stable profitability development despite increased short fibre pulp prices
Helsinki, Finland, 2015-07-23 13:00 CEST (GLOBE NEWSWIRE) --
MUNKSJÖ OYJ, INTERIM REPORT, 23 JULY AT 13:00 PM CEST
Munksjö Oyj's Interim Report for January-June 2015: Stable profitability
development despite increased short fibre pulp prices
Highlights of the second quarter 2015:
- Net sales were EUR 291.2 (292.5) million.
- Adjusted EBITDA was EUR 25.0 (26.0) million and the adjusted EBITDA margin
was 8.6% (8.9%).
- Operating result adjusted for non-recurring items was EUR 11.5 (13.4)
million. Non-recurring items amounted to EUR -2.4 (-0.6) million.
- Operating result was EUR 9.1 (12.8) million and net result EUR 2.7 (4.1)
million.
Highlights of January-June 2015:
- Net sales were EUR 571.4 (580.4) million.
- Adjusted EBITDA was EUR 51.5 (53.4) million and the adjusted EBITDA margin
was 9.0% (9.2%).
- Operating result adjusted for non-recurring items was EUR 24.7 (27.1)
million. Non-recurring items amounted to EUR -2.4 (-1.6) million.
- Operating result was EUR 22.3 (25.5) million and net result EUR 12.4 (8.4)
million.
- Earnings per share (EPS) were EUR 0.24 (0.16).
- Operating cash flow was EUR 1.2 (8.3) million.
KEY FIGURES (MEUR) Apr-Jun Jan-Jun Jan-Dec
2015 2014 2015 2014 2014
Net sales 291.2 292.5 571.4 580.4 1,137.3
EBITDA (adj.*) 25.0 26.0 51.5 53.4 105.0
EBITDA margin, % (adj.*) 8.6 8.9 9.0 9.2 9.2
EBITDA 22.6 25.4 49.1 51.8 99.4
EBITDA margin, % 7.8 8.7 8.6 8.9 8.7
Operating result (adj.*) 11.5 13.4 24.7 27.1 51.0
Operating margin, % (adj.*) 3.9 4.6 4.3 4.7 4.5
Operating result 9.1 12.8 22.3 25.5 45.4
Operating margin, % 3.1 4.4 3.9 4.4 4.0
Net result 2.7 4.1 12.4 8.4 7.7
Earnings per share (EPS), EUR 0.05 0.07 0.24 0.16 0.14
Interest-bearing net debt 260.8 241.5 260.8 241.5 225.6
* Adjusted for non-recurring items
Unless otherwise indicated, the figures in parentheses refer to the figures for
the equivalent period in 2014. This interim report is unaudited. It is
published in Swedish, Finnish and English. In case of any discrepancies between
the three versions, the Swedish text shall prevail.
Comment from Munksjö's President and CEO, Jan Åström
"The underlying demand for Munksjö's products has been stable in the first six
months of 2015 and showed only small variations between the quarters.
A major reason for the stable, but still unsatisfactory profitability
development during the first six months compared with previous year, were the
increased prices for short fibre pulp. The second quarter was also impacted by
a maintenance shutdown at the pulp production facility in Aspa, Sweden, which
had an effect on our EBITDA of about EUR -4 million. As communicated earlier,
the interval between the maintenance shutdowns has after the stop been
prolonged to 18 months and the next maintenance shutdown in Aspa will be
implemented in the fourth quarter of 2016.
The price increases communicated at the time of our latest interim report are
now being implemented within the business areas Decor and Release Liners. The
price increases of up to 3 per cent in business area Decor and of up to 8 per
cent in business area Release Liners are expected to gradually compensate for
the increased pulp prices during 2015. The price increases are expected to have
a gradual effect on the average price of the Group in the third quarter and a
full effect from the beginning of the fourth quarter of 2015.
As in the first quarter, the foreign exchange movements did not have a
noticeable effect on the combined result of the business areas, however the
effect on the individual business areas varies. The currency hedge loss
decreased to EUR 1.3 million in the second quarter from EUR 2.4 million in the
first quarter of 2015. The currency hedge loss was more than compensated for by
exchange gains on financial assets and liabilities of EUR 4.1 (-0.9) million
recorded in net financial items.
We are constantly working on initiatives to further adjust our cost base and
increase our net sales. The initiatives are evaluated and processed
continuously and will be announced as the plans are finalised. The efforts and
actions to achieve our profitability target, an EBITDA margin of 12 per cent at
the end of 2016, are on-going and proceed according to the individual plans
made for each of the four business areas."
Outlook
The demand outlook of specialty paper products for the third and fourth quarter
of 2015 is stable. The annual maintenance and vacation shutdowns in the third
quarter as well as the seasonal shutdowns at the end of 2015 are expected to be
carried out to about the same extent as in 2014.
Prices of Munksjö's specialty paper products in local currency are expected to
further increase in the second half of 2015 compared to the first six months of
2015, when the negotiated price increases gradually will be implemented. The
price increases of up to 3 per cent in business area Decor and of up to 8 per
cent in business area Release Liners are hence expected to gradually compensate
for the increased pulp prices during 2015. The price increases are expected to
have a gradual effect on the average sales price of the Group in the third
quarter and a full effect from the beginning of the fourth quarter of 2015.
The cash flow from operations is expected to reflect the seasonal pattern and
hence improve during the second half of the year.
The cash flow effect from capital expenditure for fixed assets for 2015 is
expected to amount to about two thirds of the depreciation level.
The Munksjö Group
Apr-Jun Jan-Jun Jan-Dec
MEUR 2015 2014 2015 2014 2014
Net sales 291.2 292.5 571.4 580.4 1,137.3
EBITDA (adj.*) 25.0 26.0 51.5 53.4 105.0
EBITDA margin, % (adj.*) 8.6 8.9 9.0 9.2 9.2
EBITDA 22.6 25.4 49.1 51.8 99.4
EBITDA margin, % 7.8 8.7 8.6 8.9 8.7
Operating result (adj.*) 11.5 13.4 24.7 27.1 51.0
Operating margin, % (adj.*) 3.9 4.6 4.3 4.7 4.5
Operating result 9.1 12.8 22.3 25.5 45.4
Operating margin, % 3.1 4.4 3.9 4.4 4.0
Net result 2.7 4.1 12.4 8.4 7.7
Capital expenditure 11.1 8.6 20.0 14.1 35.1
Employees, FTE 2,785 2,770 2,768 2,770 2,765
* Adjusted for non-recurring items
Second quarter 2015
Net sales were EUR 291.2 (292.5) million.
EBITDA adjusted for non-recurring items decreased to EUR 25.0 (26.0) million
and the adjusted EBITDA margin was 8.6% (8.9%). Currency hedge losses of EUR
1.3 (0.5) million were recorded in segment Other in the second quarter.
The operating result adjusted for non-recurring items was EUR 11.5 (13.4)
million. Non-recurring items amounted to
EUR -2.4 (-0.6) million and were mainly related to environmental provisions.
The operating result was EUR 9.1 (12.8) million and net result EUR 2.7 (4.1)
million.
January-June 2015
Net sales were EUR 571.4 (580.4) million.
EBITDA adjusted for non-recurring items decreased to EUR 51.5 (53.4) million
and the adjusted EBITDA margin was 9.0% (9.2%). Currency hedge losses of EUR
3.6 (0.6) million were recorded in segment Other in the reporting period.
The operating result adjusted for non-recurring items was EUR 24.7 (27.1)
million. Non-recurring items amounted to EUR -2.4 (-1.6) million and were
mainly related to environmental provisions.
The operating result was EUR 22.3 (25.5) million and net result EUR 12.4 (8.4)
million.
The currency hedge loss was more than compensated for by exchange gains on
financial assets and liabilities of EUR 4.1 (-0.9) million recorded in net
financial items.
Webcast and conference call
A combined news conference, conference call and live webcast for investors,
analysts and media will be arranged on the publishing day 23 July 2015 at 2:30
p.m. CEST (3:30 p.m. EEST, 1:30 p.m. UK time) at restaurant Savoy, room
Kabinetti 2 (Eteläesplanadi 14, 7th floor, Helsinki). The report will be
presented by President and CEO Jan Åström. The event will be held in English.
The conference call and live webcast can be followed on the Internet and an
on-demand version of the webcast will be available on the same webpage later
the same day. To join the conference call, participants are requested to dial
one of the numbers below 5-10 minutes prior to the start of the event.
Webcast and conference call information
Finnish callers: +358 (0)9 2313 9201
Swedish callers: +46 (0)8 5052 0110
US callers: +1 334 323 6201
UK callers: +44 (0)20 7162 0077
Conference ID: 953912
Link to the webcast:
http://qsb.webcast.fi/m/munksjo/munksjo_2015_0723_q2/#/stream
For further information, please contact
Jan Åström, President and CEO, Tel. +46 10 250 1001
Pia Aaltonen-Forsell, CFO, Tel. +46 10 250 1029
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