KEY HIGHLIGHTS
*Sales volumes increased by 5%
*Continued positive development of the ramp-up at Gruvön (KM7)
*Cost and efficiency programme exceeding target
*Strong operating cash flow
*The Board of Directors proposes dividend of SEK 4.30 per share
Quarterly data
*Net sales amounted to SEK 5 803 million (5 815). Excluding currency effects sales grew by 2%
*Adjusted EBITDA* was SEK 568 million (618). Lower sales prices and higher maintenance costs were partly offset by lower fibre costs and a positive trend of the ramp-up at Gruvön
*Operating profit rose to SEK 163 million (103), including SEK 73 million revaluation gain in an associated company
*Net profit from continuing operations was SEK 242 million (283)
*Earnings per share amounted to SEK 1.17 (1.61)
The year 2020 was an extraordinary period in which the coronavirus pandemic threatened people’s health, lives and livelihoods around the world. At BillerudKorsnäs, we have been relatively unscathed and are humbled by the resilience of our business and our employees’ ability to handle challenges and adapt to new working conditions. We have taken precautionary measures to prevent the spread of infection and to secure our operations and deliveries. Reduced demand in some end-user markets has meant challenging market conditions, although our largest market segment, packaging material for food and beverages, has been resilient.
BillerudKorsnäs delivered a decent fourth quarter financial results. Net sales excluding currency effects grew as a result of higher sales volumes. Adjusted EBITDA declined due to lower market prices, higher maintenance costs and unfavourable currency effects, while lower fibre costs had a positive impact. The company has a healthy financial position and the Board of Directors proposes a dividend of SEK 4.30 per share.
The year 2021 is looking brighter than the past year thanks to the widespread roll-out of vaccines. It is, however, still too early to celebrate as the coronavirus will continue to affect life in large parts of the world. While the macro-economic outlook remains uncertain, we expect stable market conditions for most of our product segments and price improvements in selective segments in the first quarter. We also anticipate a recovery in liquid packaging board. Demand in some market segments, such as paper for medical and hygiene products and food service, is however expected to remain challenging. The total cost of fibre is expected to be unchanged in the first quarter.
more at: https://www.billerudkorsnas.com/press–news/press-releases/2021/year-end-report-januarydecember-2020