Ahlstrom-Munksjö half-year report January-June 2017: Good start for the combined company with solid quarterly result

In this half-year 2017 report, the January-June 2017 figures as well as all comparison figures are presented on a pro forma basis to illustrate the financial impact of the merger between Ahlstrom and Munksjö as if it had been completed at the beginning of 2015. Only the April-June 2017 figures are presented according to International Financial Reporting Standards (IFRS). The appendix including unaudited consolidated financial statements has been prepared according to IFRS standards.

April-June 2017 compared with April-June 2016
·  Net sales EUR 576.9 million (EUR 561.0 million), showing a gain of 2.8%. Comparable net sales increased by 1.8% at constant currency rates.
·  Comparable EBITDA EUR 77.4 million (EUR 77.3 million), representing 13.4% (13.8%) of net sales
·  EBITDA* EUR 75.0 million (EUR 76.0 million)
·  Operating result* EUR 43.3 million (EUR 42.5 million)
·  Net result* EUR 27.5 million (EUR 23.7 million)
·  Earnings per share* EUR 0.28 (EUR 0.25)
·  Comparable EPS excluding merger related items (PPA) EUR 0.39 (0.25)
·  Net cash flow from operating activities EUR 41.2 million (EUR 89.1 million)

January-June 2017 compared with January-June 2016
·  Net sales EUR 1,143.8 million (EUR 1,096.9 million), showing a gain of 4.3%. Comparable net sales increased by 2.7% at constant currency rates.
·  Comparable EBITDA EUR 156.8 million (EUR 137.2 million), representing 13.7% (12.5%) of net sales
·  EBITDA* EUR 150.5 million (EUR 111.6 million)
·  Operating result* EUR 86.2 million (EUR 43.1 million)
·  Net result* EUR 51.7 million (EUR 13.3 million)
·  Earnings per share* EUR 0.54 (EUR 0.14)
·  Comparable EPS excluding merger related items (PPA) EUR 0.64 (0.33)
·  Net cash flow from operating activities EUR 84.1 million (EUR 84.5 million)

Major events
·  The merger of Ahlstrom Corporation into Munksjö Oyj was completed on April 1, 2017
·  The company redeemed the EUR 100 million hybrid bond with an annual fixed interest rate of 7.875% and issued a EUR 250 million bond with an annual fixed coupon of 1.875% as part of a refinancing package to lower financing costs. Furthermore, the EUR 100 million bond with an annual fixed coupon of 4.125% maturing in 2019 was tendered and EUR 89.2 million was offered for purchase by noteholders.

CEO comments: Jan Åström
“We had a good quarter, our first as Ahlstrom-Munksjö, and we achieved a solid operational result and profitability. We were able to capitalize on the strong demand for most of our products across many regions. In addition, the integration work is proceeding as planned and the identified synergy benefits are already becoming clearly visible as we reached an annual run rate of about EUR 13 million by the end of the quarter.

Our performance was driven by excellent results in the Filtration and Performance, and Industrial Solutions business areas. Our Decor business area experienced good demand, while enduring a sharp increase in input costs. We will continue to work on our pricing to mitigate this. In Specialties, almost all of our units improved and we will keep on working hard in integrating the former Graphics and Packaging unit into that business area. This will also help us to address the oversupplied market in coated one-sided papers.

We have also raised our estimate for investments this year to address the several near-term growth opportunities in many of our segments, such as filtration, food packaging and abrasives. In addition, we refinanced our funding structure during the quarter to significantly lower our financing costs. Going forward, we are working with full steam ahead to achieve and even exceed the synergy targets, set at the time of the merger. I’m fully confident that we can deliver on our long-term targets by following our strategic direction based on profitable growth, customer value, accountability, flexibility and agility.”
more detail at:  https://www.ahlstrom-munksjo.com/Media/releases/stock-exchange-releases2/2017/ahlstrom-munksjo-half-year-report-january-june-2017-good-start-for-the-combined-company-with-solid-quarterly-result/

Related Posts

Amcor sells factories in Russia

Amcor announced it completed the sale of its three factories in Russia to HS Investments, a Russian-based investor, after receiving all necessary regulatory approvals and cash proceeds, including receipt of closing cash balances. The cash and debt free consideration value is €370 million. This follows Amcor’s previously announced decision to pursue the orderly sale of its Russian business while continuing to support its people and customers as well as preserving value for shareholders. The Russian business produces flexible and cartons packaging from one site in St. Petersburg and two sites in Novgorod and employs approximately 900 people. Amcor’s three sites in Russia generated approximately 2% of total Amcor sales in fiscal 2022.

Omnichannel Grocery Stores Create Need for Protective Food Packaging

As more people use technology to shop, grocery stores are following in the footsteps of fashion and electronics retailers by leveraging the omnichannel sales model. The COVID-19 pandemic and associated stay-at-home orders resulted in an increase in consumers purchasing groceries online. As a result, grocery retailers are now challenged to find the right protective food packaging, ensuring purchases arrive fresh and intact no matter if they’re shipped, delivered, or prepared for curbside pickup. This means brick-and-mortar grocery stores are charged with transforming into micro fulfillment centers. They now must take the same precautions consumers would to protect groceries in transit. Furthermore, employees must pick and pack items as if they were the customer themselves. And during transit, groceries need to be protected from extreme temperature fluctuations, crushing by other items, or accidental droppings. Grocery stores, especially those that haven’t started the transition to an omnichannel strategy, face three major challenges: They must carve out a footprint inside their existing stores to efficiently fill orders, re-train staff to handle in-store and online orders, and ensure that products are shipped with appropriate packaging.

Sonoco Reports Second Quarter 2021 Results

Net sales for the second quarter of 2021 were $1.38 billion, up 11.0 percent from last year's second quarter sales of $1.25 billion. This growth was driven by an improvement in volume/mix, higher selling prices mostly implemented to offset inflation and a favorable impact from foreign exchange. GAAP net loss attributable to Sonoco in the second quarter of 2021 was $(334.1) million, or $(3.34) per diluted share, a decrease of $389.3 million, compared with income of $55.2 million, or $0.55 per diluted share, in 2020. Gross profit was $262.7 million in the second quarter of 2021 compared to $248.0 million in the same period in 2020. Quarterly gross profit as a percentage of sales declined 92 basis points year over year to 19.0 percent.
Back To Top
×Close search
Search