Ahlstrom-Munksjö Half-Year Report January-June 2020

HIGHLIGHTS DURING THE REPORTING PERIOD
-Solid comparable EBITDA and increased margin despite the decline in delivery volumes caused by the coronavirus pandemic
-Swift response and cost reduction actions cushioned the impact of the pandemic
-Customer activity varied within Ahlstrom-Munksjö’s broad geographical reach and product range as a result of the pandemic
-Strong growth in the healthcare and life science end-use segments, expansion of face mask materials production. Clear weakening in home building and furniture, transportation and industrial end uses.
-Signs of a gradual normalization of customer activity in certain segments towards the end of the quarter
-Improved financial flexibility and good liquidity with no major refinancing needs
-Launch of Ahlstrom-Munksjö FortiCell®, a new range of fiber-based solutions for energy storage applications

Q2/2020 compared with Q2/2019
-Net sales decreased by 16.6% to EUR 621.5 million (745.1), mainly due lower delivery volumes
-Comparable EBITDA decreased by 11.7% to EUR 74.0 million (83.8), representing 11.9% (11.2) of net sales, supported by variable and fixed costs reduction actions
-Operating result of EUR 25.8 million (35.0)
-Net result EUR 9.0 million (14.8)
-Earnings per share (basic) EUR 0.07 (0.13)
-Comparable EPS excluding depreciation and amortization arising from PPA EUR 0.18 (EUR 0.25)

Q1-Q2/2020 compared with Q1-Q2/2019
-Net sales decreased by 10.9% to EUR 1,339.6 million (1,502.8), negatively impacted by price, product mix and volumes
-Comparable EBITDA increased by 4.4% to EUR 165.7 million (158.8), representing 12.4% (10.6) of net sales, as lower variable costs more than offset lower selling prices and deliveries
-Operating result of EUR 99.6 million (52.9), including a capital gain of EUR 32.0 million from the sale of the fine art paper business
-Net result EUR 55.7 million (18.9)
-Earnings per share (basic) EUR 0.46 (0.16)
-Comparable EPS excluding depreciation and amortization arising from PPA EUR 0.48 (0.46)
-Net debt decreased to EUR 878.7 million (885.0 in Q4/2019), supported by the sale of the fine art paper business

CEO COMMENTS
I’m pleased with our performance in the second quarter, and particularly with our swift response and actions to mitigate the near-term impact of the coronavirus pandemic. Considering the exceptional circumstances, comparable EBITDA of EUR 74 million and an improved margin of 11.9% is a good achievement. We have been able to keep our plants operational and serve our customers, while ensuring the health and safety of our employees thanks to our COVID-19 Safety Protocol. In addition, we have increased our financial flexibility and currently have good liquidity, with no major near-term refinancing needs.

VARIED IMPACT ON CUSTOMER ACTIVITY – CUSHIONING WITH ACTIONS
Within our broad product range of advanced fiber-based solutions, the impact of the coronavirus pandemic on customer activity has varied. Demand remained strong in the healthcare and life science end-use segments, while it remained relatively stable in the consumer goods segment, albeit with some variation depending on end use. The biggest decline was in the home building and furniture, transportation and industrial end-use segments. All in all, the exceptional market environment led to a 10% reduction in our deliveries, which was the main driver behind the decrease in net sales and comparable EBITDA. However, we worked hard on our own actions to reduce variable and fixed costs, and this cushioned the impact of lower volumes.

I’m also pleased that we were able to drive our business forward during the pandemic. Our in-depth knowledge of fiber-based materials, agile organization and common manufacturing platform enabled us to expand our manufacturing capabilities of face mask fabrics globally to lines normally used for the production of other fiber-based materials. We also took further steps in supplying the electric vehicle battery market by introducing a platform of fiber-based energy storage applications solutions. Our other new value-added solutions include a replaceable filter media for branded outdoor apparel used as face masks.

Our work was awarded the EcoVadis Gold rating for the fourth consecutive year thanks to our good performance within environmental impact, labor practices, fair business practices and sustainable procurement. This reinforces our sustainability strategy.
https://www.ahlstrom-munksjo.com/Media/releases/stock-exchange-releases2/2020/ahlstrom-munksjo-half-year-report-january-june-2020-solid-result-under-exceptional-circumstances/

Related Posts

UPM Interim Report Q1/2018: UPM continues to grow earnings – Strong customer demand in all businesses

Q1 2018 highlights •Comparable EBIT increased by 17% to EUR 355 million (305 million in Q1 2017). •Sales prices increased in all business areas, outweighing the impact of higher input costs and unfavourable currencies. •Operating cash flow was EUR 208 million (396 million), including an increase in working capital. •Net debt decreased to EUR 41 million (807 million). Click Read More below for additional information.

Stora Enso continues to invest in renewable energy at production sites

Stora Enso will invest EUR 10 million at its Enocell pulp mill in Finland to replace fossil-based heavy fuel oil with renewable pitch oil. This will reduce the environmental impact of the operations and help in reaching the ambitious target for reducing greenhouse gas emissions. Currently, the main energy sources for Enocell pulp mill are renewable black liquor, bark, and saw dust powder, but fossil-based heavy fuel oil is needed when the pulp mill is started up after maintenance stops or production disturbances. By replacing heavy fuel oil with pitch oil that is made from trees, Enocell pulp mill aims at becoming a site running 100% on bio-energy and, thus, reduce its fossil CO2 emissions by almost 70 000 tonnes annually, which is approximately 50% of Biomaterials division’s fossil CO2 emissions, and a significant contribution to achieving Stora Enso’s climate targets.

Glatfelter carbonless price increase

Due to large increases in key input material costs, including over a two-fold increase in colorformers to ensure an uninterrupted supply, that cannot be offset by our on-going internal continuous improvements, cost reductions, and operating excellence efforts, Glatfelter is announcing a price increase for carbonless roll products, carbonless sheet products and security papers sold in our United States and Canadian markets. The increase will be effective with shipments on or after January 15, 2018. The increase will be 6% for the following items: All Glatfelter Carbonless Roll products; Carbonless Roll Accessories (CF and CB Sprays); Defensa® Security CB products; All Glatfelter Carbonless Sheet Products; Fan-Apart Adhesive. The increase will be $4.00/cwt for the following item: Defensa® Basic. The increase will be $5.00/cwt for the following items: Defensa® Premium Defensa® Design; Defensa® Security Gate Defensa® True. All current standard differentials and upcharges remain in effect.
Back To Top
×Close search
Search