Pulp boosted Q1 result, but bruised the paper segment
- Q1 consolidated sales revenue was PLN 820.6mn (EUR1 190.7mn).
- EBITDA Q1 was PLN 82.4mn (EUR1 19.1mn).
- EBIT Q1 was PLN 59.1mn (EUR1 13.7mn) and net profit PLN 38.2mn (EUR1 8.9mn).
- Appointment of new EVP for Sales in March to revitalise the sales organisation.
- Implementation of profit improvement program for the paper business, with the ambition to generate annual cost savings of PLN 40mn with full effect from 2020.
- Launch of Munken Kraft, a new product aimed at the sustainably growing packaging segment.
- The Q1 result for the paper segment resulted in a breach in the covenants of the segment’s financing agreement, which the banks have already waived. In a separate process, we plan to convene a bond holders’ meeting in order to obtain their waiver.
“In order to meet the market development and strengthen our competitiveness, we must work ever harder to lower our costs, increase productivity and accelerate the reshaping of our product portfolio.”
Michał Jarczyński, CEO (see letter from the CEO on page 2 in the press release)
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Tuesday, 28 May, 2019