Press Release
Kostrzyn nad Odra /
Arctic Paper S.A. , Q1 2024:
· Q1 consolidated sales revenue was PLN 965,4mn (
· EBITDA Q1 was PLN 112,0mn (
· EBIT Q1 was PLN 83,7mn (
· Recovery within the paper segment compared to the consecutive quarter.
· Continued development of the energy segment with expanding PV projects.
· After the period: contract signed regarding energy storage at the Swedish mills.
· Given decision at AGM on
"The first quarter came in with lower sales and profit than for the comparison quarter. At the same time, the consolidated result was stronger than for the consecutive quarter."
Michał Jarczyński, CEO (see letter from the CEO on page 2)
Selected financial results - Arctic Paper Group3 and Arctic Paper (paper segment)
PLN (million) | Q1 2024 | Q1 2023 | Change | Q4 2023 |
Sales revenue, | 965,4 | 1 032,2 | -66,8 | 825,9 |
Sales revenue, | 701,0 | 722,3 | -21,2 | 581,2 |
EBITDA, | 112,0 | 185,5 | -73,5 | 96,3 |
EBITDA, | 109,0 | 113,8 | -4,8 | 119,8 |
EBIT, | 83,7 | 155,6 | -72,0 | 67,1 |
EBIT, | 89,7 | 93,4 | -3,7 | 97,3 |
Net profit, | 81,6 | 131,7 | -50,1 | 35,6 |
Net profit, | 97,8 | 82,8 | +15,0 | 60,8 |
Net profit, PLN per share2 | 1.19 | 1.56 | -0.37 | 0,69 |
Net debt | -310,0 | -258,4 | -51,6 | -347,5 |
1Arctic
2 Net profit per share: net profit for the paper segment plus 51% of the net profit for
3 Due to the consolidation rules, data regarding the pulp segment presented in the consolidated report of the
"Progress in the energy segment continues. At the end of May, a 17 MW expansion of our PV farm in Kostrzyn will be commissioned and we expect to receive permission to install an additional 9 MW in 2025."
Michał Jarczyński, CEO of
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In line with results from recent quarters, we still see a mixed picture due to uncertainty affecting the general economy. The first quarter of 2024 came in with lower sales and profit than for the comparison quarter. At the same time, the consolidated result for Q1, 2024 was stronger than for the consecutive quarter. We clearly see the benefits of combining pulp and paper as the two segments balance each other through economic cycles. For the first quarter of 2024, the Group's revenue amounted to PLN 965.4 million (1,032.2) and EBITDA to PLN 112.0 million (185.5). The operating margin was 11.6 percent (18.0).
For the paper segment, the first quarter of the year is normally one of the best and we saw an increase in demand compared to the fourth quarter last year. Paper sales revenue reached PLN 701.0 million (722.3) with an EBITDA of 109,0 million (113.8) and an EBITDA margin of 15.5 percent (15.8). The capacity usage continued to rise and reached 86 percent (71). Although our focus is still on optimizing production in terms of profitability rather than volume, this is a healthier level for the business in a long-term perspective.
For the pulp segment (
For the packaging segment, the investment in a new production unit for molded fiber trays in Kostrzyn is progressing with an expected start of production in the third quarter of 2024.
Progress in the energy segment continues. At the end of May, a 17 MW expansion of our PV farm in Kostrzyn will be commissioned and we expect to receive permission to install an additional 9 MW in 2025. In addition, we are currently evaluating potential solar acquisitions. After the period, we signed an agreement to house battery storage systems in our premises in Munkedal and in Grycksbo. This contract is expected to contribute annually to EBITDA in the range of
Looking to the near future, the market outlook remains uncertain, and we expect 2024 to be a challenging year. As the economy recovers, the balance between paper and pulp will slowly shift in favour of pulp. With the Group's solid finances as a strong foundation, we continue to diversify our business in line with the 4P strategy with new investments in packaging and power, while maintaining and strengthening our business position in paper and pulp.
Michał Jarczyński, CEO of
Financial calendar 2024: Q2 2024:
This disclosure contains information that
Further information provided by:
Phone +46 10 451 7005
michal.jarczynski@arcticpaper.com
+48 61 626 2004
katarzyna.wojtkowiak@arcticpaper.com
Arctic Paper Group is a European company and a leading producer of high-quality graphical fine paper, bio-based packaging solutions, high-quality wood pulp, and energy, increasingly of non-fossil origin. The company is present with its own sales offices in
For more information visit, arcticpapergroup.com
https://news.cision.com/arctic-paper/r/arctic-paper-s-a--q1-2024--positive-signals-in-uncertain-times,c3978824
https://mb.cision.com/Main/5162/3978824/2794589.pdf
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