Sappi delivers record earnings for the third financial quarter 2022
The packaging and speciality papers segment reached another record level of profitability despite flat year-on-year sales volumes, which were constrained by available capacity and low inventory levels in North America and South Africa. Demand remained robust and further selling price increases lifted margins for the segment. Graphic paper sales volumes were 4% higher than the prior year. The segment benefited from tight market conditions which supported selling price increases and drove margin growth. These favourable market conditions enabled all assets to run at full operating rates during the quarter. A substantial improvement in profitability of the European business was a result of favourable market conditions, which facilitated selling price increases in the paper segments and enabled the region to offset higher costs across all input categories. Profitability of the North American business continued its upwards trajectory with the region recording yet another record quarterly EBITDA of US$118 million.