Harnessing Solar Power at Resolute’s Florida Tissue Operations

Helen Mets, President and CEO, comments on second quarter 2024: Ahlstrom delivered another strong performance in Q2. Our profitability improved once again, while cash flow remains solid. Obsessed with our customers and the markets we serve; we launched several innovative new products − including fluorochemical-free filtration and paper-based pet food materials − to meet the growing need for safe and sustainable solutions. We also refined our strategy and streamlined our organization to accelerate our growth transformation. In addition, our Q2 pulse survey showed an increase in employee engagement. The latest engagement score places Ahlstrom close to the level of the top 10% of companies in the manufacturing industry. I am proud of the progress that we continue to deliver. During the second quarter, market activity continued to strengthen. Adjusted for Stenay divestiture deliveries increased compared to both the previous quarter and the previous year. Comparable EBITDA also grew, supported by an increasingly strong margin on variable cost per ton. This improvement can be attributed largely to our transformation initiatives, including disciplined price management and cost efficiency measures. Overall, cash flow remained solid, supported by the higher profitability, efficient working capital management, and sustainable lower capital expenditure.

Sole Source Capital LLC announced that its portfolio company, I.D. Images (“IDI”), a premier provider of product identification solutions, has made three significant acquisitions over the past five months. IDI’s acquisitions of Digital Printing Concepts, Multi-Action Communications, and Valley Forge Tape & Label Company have more than doubled the size of the company and extended its reach to several new markets across the U.S. and Canada since it became a Sole Source Capital portfolio company in August 2021. Terms of the transactions were not disclosed. IDI manufactures high-quality durable and graphic intensive labels that address a broad range of product identification needs for a variety of end markets. Digital Printing Concepts, founded in 2003 and based in East Providence, RI, is a manufacturer of custom durable variable data labels that are utilized in warehouse logistics. Headquartered in Quebec, Canada, Multi-Action Communications is a manufacturer of logistics, grocery, track-and-trace, and prime labels to customers throughout Canada and the United States. The company was founded in 1993 and operates out of three manufacturing facilities across Canada. Based in Exton, PA and founded in 1962, Valley Forge Tape & Label Company is a longstanding, full-service manufacturer of custom printed self-adhesive labels for the Food and Beverage, Healthcare, and Consumer Products industries.

Commenting on the group’s results, Sappi Chief Executive Officer Steve Binnie said: “Following a strong last quarter, I am pleased we were able to exceed our expectations for the year with Adjusted EBITDA* of US$684 million for the year ended September 2024. Our strong performance occurred against the backdrop of the subdued macroeconomic environment, ongoing low consumer confidence, and persistent geopolitical uncertainty. A key highlight was the pulp segment’s strong performance, driving record profitability for the South African region. However, paper markets remained subdued, with the expected recovery in demand after the prolonged destocking phase of 2023 unfolding slower than anticipated. Significant fixed costs savings were achieved through our strategic rationalisation actions.”