Metsä Board’s CEO Mika Joukio: “Metsä Board had an excellent start for the year 2018 and the result for January-March was the best in years. Our sales grew by 9 percent and our comparable operating profit improved by 27 percent compared to the previous quarter. The production and delivery volumes of paperboard rose and sales prices in local currencies improved in all of our important market areas. The rise in prices compensated in full for the negative effect on results caused by exchange rates. Our profitability also improved due to the pulp market being stronger than expected and the rise in pulp prices. No significant maintenance shutdowns took place during the first quarter, which improves the quarter’s results in comparison to other quarters.
The production efficiency of our mills was at a good level, and several of our production units set new monthly production records. The production and delivery volumes of PE-coated paperboard at the Husum mill in Sweden also grew.
Our balance sheet remained to be strong. We have reduced our net interest-bearing liabilities by more than EUR 100 million over the year. The credit market showed its trust in Metsä Board’s future: in February, the credit rating agency Standard & Poor’s raised our credit rating to investment grade.
In our research and development operations, we are focusing on reducing the weight of paperboard and on the development of biobased barrier materials and other innovative barrier solutions. In January, we launched a new biobased, biodegradable ecobarrier paperboard for the food service end-uses.
I believe that the demand for fresh fibre paperboard will continue to grow. The plastic waste accumulating in oceans has raised environmental awareness among consumers, and concern over the transfer of mineral oils from packages made from recycled fibres to foodstuffs themselves is increasing demand for pure and safe fresh fibre. Metsä Board’s ecological and lightweight paperboards successfully meet these market trends and needs.”
January–March 2018 (10–12/2017)
• Sales were EUR 492.3 million (451.3).
• Comparable operating result was EUR 69.0 million (54.4), or 14.0% (12.0) of sales. The operating result was EUR 69.0 million (54.4).
• Comparable earnings per share were EUR 0.15 (0.12), and earnings per share were EUR 0.15 (0.12).
• Comparable return on capital employed was 15.8% (12.4).
more detail at: https://www.metsaboard.com/Media/Stock-Exchange-and-Press-Releases/Pages/Release.aspx?EncryptedId=A1C13A8DDA41105A&Title=MetsaBoardscomparableoperatingresultinJanuaryMarch2018wasEUR69million