Q3/2020 compared with Q3/2019
• Net sales decreased by 8.0% to EUR 654.5 million (711.3), mainly due an adverse currency effect and lower average selling prices
• Comparable EBITDA decreased to EUR 78.9 million (83.6), representing 12.1% (11.7) of net sales, impacted by scheduled maintenance shutdowns
• Operating result of EUR 32.9 million (34.3)
• Net result EUR 15.5 million (12.0)
• Earnings per share (basic) EUR 0.13 (0.10)
• Comparable EPS excluding depreciation and amortization arising from PPA EUR 0.24 (EUR 0.22)
Q1-Q3/2020 compared with Q1-Q3/2019
• Net sales decreased by 9.9% to EUR 1,994.1 million (2,214.1), mainly due to lower average selling prices and volumes as well as an adverse currency effect
• Comparable EBITDA increased to EUR 244.7 million (242.4), representing 12.3% (10.9) of net sales, driven by lower variable costs, which more than offset lower selling prices and sales volumes
• Operating result of EUR 132.5 million (87.2), including a capital gain of EUR 32.0 million from the sale of the fine art paper business
• Net result EUR 71.2 million (30.9)
• Earnings per share (basic) EUR 0.59 (0.26)
• Comparable EPS excluding depreciation and amortization arising from PPA EUR 0.72 (0.68)
• Net debt decreased to EUR 804.2 million (885.0 in Q4/2019), supported by the sale of the fine art paper business
CEO COMMENTS
I’m pleased with our financial performance in the third quarter, and in particular, with our agile way of responding to the recovery in customer activity. Our comparable EBITDA increased to EUR 79 million and the margin to 12.1% from the previous quarter on the back of higher customer deliveries. This was a good achievement considering the scheduled maintenance activity, and if this timing impact is excluded, our result would have been at last year’s level. Our profitability continued to benefit from lower variable costs due both to lower raw material prices and our cost-saving measures. Cash flow was strong, thanks to the seasonal reduction in net working capital, and this helped to strengthen our financial position.
Customer activity recovered during the third quarter as countries and markets reopened after lockdowns. This was particularly visible for transportation, as well as home building- and furniture-related applications, which are important end-use segments for us. Demand continued on a good level in health care and life science end uses, and remained stable in the consumer goods-related end uses. Towards the end of the quarter, there were also signs of increasing demand for industrial-related products. Overall, our sales volumes increased notably from the second quarter and were close to the previous year’s level.
A consortium of investors has announced a public tender offer to the shareholders of Ahlstrom-Munksjö. I consider this evidence of the good work we have done in recent years and how we have succeeded in creating an attractive business in a world of increasing stakeholder expectations. I am also confident that the planned ownership change would ensure that we can develop our company to its fullest future potential.
details at: https://www.ahlstrom-munksjo.com/Media/releases/stock-exchange-releases2/2020/ahlstrom-munksjo-interim-report-january-september-2020-solid-result-and-cash-flow/