Billerud Year-end report January–December 2023

Key highlights
*Weak volumes in North America and negative price and mix impact in both regions
*Sequentially lower input costs, mainly related to pulpwood in Europe
*Another strong delivery of our efficiency enhancement program
*Excellent cash delivery through working capital focus
*Negative profit impact from revaluation of biological assets in the associated company BSÖ
*The Board of Directors proposes a dividend of SEK 2.00 per share (7.50)

Quarterly data Q4
*Net sales decreased by 20% to SEK 9,566 million (11,971)
*Adjusted EBITDA* SEK 774 million (2,092)
*Adjusted EBITDA margin 8% (17)
*Operating loss SEK 191 million (profit: 1,353) including items affecting comparability of SEK -244 million (-52)
*Net loss SEK 330 million (profit: 940)
*Earnings per share SEK -1.33 (3.79)

Comments by the CEO
2023 has been an extremely challenging year. Early in the year, we faced unusually high inventory levels throughout the value chain. The whole industry has needed to be patient and wait for the destocking to phase out. In that sense, the fourth quarter was no exception, and broadly in line with our expectations. Sales volumes came in somewhat softer due to customers protecting their working capital before year-end, and logistical challenges. The good news is, going into 2024, we see clear indications that customers’ inventories are returning to normalized levels.

The organic and currency-neutral net sales in the fourth quarter declined by 21% compared to the same period last year. Our input costs continued to decrease sequentially, mainly attributed to lower wood costs in Europe. However, low sales volumes in North America as well as deteriorated prices and unfavorable category mix in both regions led to an adjusted EBITDA margin of 8%, a performance we are not satisfied with.

We have maintained a strong focus on items we can influence in an unfavorable market environment. In this context, I’m proud of the results we have delivered throughout 2023. Our three-year efficiency enhancement program has excellent momentum, and we overdelivered on the 2023 target. I am also pleased with the outstanding cash flow conversion for the year of 99%, mainly driven by successful reduction of inventory levels. This enabled us to finish the year with a continued strong balance sheet. The Board proposes a dividend for 2023 of SEK 2.00 per share, 65% of the adjusted net profit.
details at: https://www.billerud.com/press–news/press-releases/2024/year-end-report-januarydecember-2023

Related Posts

UPM Raflatac RAFNXT+ is the world’s first CarbonNeutral® certified label material

Global consumer brands are facing increasing pressure from governments and consumers to improve their sustainability. Reducing the footprint of packaging and labelling is one critical area where sustainability can be improved. Compensating for today’s unavoidable emissions, UPM Raflatac has announced that RAFNXT+ is the world’s first CarbonNeutral® certified label material. Sustainable packaging and carbon neutral labelling, clearly explaining both the packaging and the labelling’s sustainable components, are increasingly seen as an important step to encourage consumers to purchase more sustainable products. To help their many customers take positive climate action, in 2019, UPM Raflatac announced that RAFNXT+ was the world’s first label material verified by the Carbon Trust to reduce its carbon footprint and help mitigate climate change. Now, the company has taken a step further and has introduced its RAFNXT+, the world’s first CarbonNeutral® label material certified as a CarbonNeutral® product by Natural Capital Partners.

Settlement agreed on insurance coverage estimated up to NOK 2.4 billion for Norske Skog Saugbrugs

Norske Skog has worked closely with the insurance company, equipment suppliers, and other parties to determine the extent of damages following the rockslide on 27 April. The rockslide caused significant damage to buildings, cranes, machinery, and equipment associated with paper machine 6 (PM6). A settlement has now been reached between Norske Skog Saugbrugs and the insurance company regarding insurance coverage for both business interruption and property damage, estimated up to NOK 2.4 billion, which will jointly be covered by the insurance company, the Norwegian Natural Perils Pool, and reinsurers. "The rockslide on 27 April this year was a traumatic experience for Saugbrugs employees, Halden residents, and Norske Skog. Fortunately, no one was physically injured in the rockslide, but PM6 and its associated building structures sustained substantial damage. After significant efforts from mill employees and other stakeholders, we are pleased to have reached an agreement with our insurance company for both business interruption and property damage, estimated up to NOK 2.4 billion. We have had an excellent dialogue and been treated very fairly by our insurance company throughout the process," says Geir Drangsland, CEO of Norske Skog.

UPM inaugurates its new deep sea pulp terminal in the Port of Montevideo

UPM inaugurates today its new pulp terminal in the port of Montevideo, Uruguay. This investment of approximately USD 280 million is a fundamental part of UPM’s USD 3.47 billion growth investment in Uruguay that includes a state-of-the-art pulp mill in Paso de los Toros, new eucalyptus tree nursery as well as local community investments in Paso de los Toros. “This is a significant milestone in our growth project in Uruguay. The new pulp terminal with direct connections from the new pulp mill and to the global markets plays a key role in the growth and competitiveness of UPM’s pulp business,” says UPM President and CEO Jussi Pesonen. “The public infrastructure investments to the deep sea port and railway improve the competitiveness of all export sectors in Uruguay.”
Back To Top
×Close search
Search