Papeles y Cartones de Europa : Nov 8, 2018 Europac net profit grows 36%

3Q 2018 PROFITS

EUROPAC NET PROFIT GROWS 36%

• • In the first nine months of the year, net profit stood at 79.1 million euros, compared to 58.2

  million posted in the same period of 2017

• • Aggregate sales amounted to 943.6 million euros, 7.6% up on the figure posted in the first nine months of last year

• • The recurrent EBITDA figure rose by 50.9% on the third quarter of 2017, amounting to157 million euros

• • Stable paper demand on the third quarter with higher sales prices than a year before, while raw materials prices remain at low levels

• • Higher sale prices of packaging, implemented as forecasted, to pass on to the market the continuous rises in paper prices - its raw material

Madrid, 8 November 2018.- The Board of Directors of the Europac Group has approved the accounts corresponding to the third quarter of the year, registering a net profit of 79.1 million euros, 35.8% higher than in the same period of 2017. With growth in aggregate sales of 7.6% to stand at 943.6 million euros, the consolidated and recurrent EBITDA figures rose by 27.0% and 50.9% compared to the third quarter of last year, amounting to 150.2 and 157.0 million euros, respectively. Additionally, consolidated EBIT over the period stood at 113.6 million euros, 45.7% higher than in the first nine months of 2017.

In a context of moderate growth of economic activity, the evolution of the results continues favoured by solid paper demand, sale price stability at high levels following the accumulated rises in the year to date and continued low prices of raw materials. These circumstances, together with higher sale prices of packaging, in line with group forecasts, turns into a consolidated EBITDA Margin of 21.1%, up 2.6 percentage points on the first nine months of 2017.

Europac Chairman José Miguel Isidro, stated that "the company results between January and September respond to higher paper sale prices combined with lower raw material prices and the efforts made by the Packaging Division to pass on price rises of its raw material to the market.. Management projects executed in recent years as well as the integrated business model that defines Europac, allow us to optimize the results in a favourable market context such as that experienced between January and September of this year".

Higher Paper and Packaging Division revenue

Revenue grew in the Paper Division by 11% compared to the third quarter of last year as a result of higher sales prices than in 2017 and a 7% increase in the production output of kraftliner paper and 1% of recycled paper. Specifically, between 1 January and 30 September, the sale price of kraftliner paper rose by 43 euros per tonne and 25 euros per tonne of recycled paper, while the raw material dropped by 40 euros per tonne over the same period.

At the Packaging Division, revenue grew by 2% compared to the first nine months of the previous year due to higher sales prices. Accordingly, the business continues to pass on to the market the rises in paper prices - its raw material -, in line with group forecasts.

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Fernando Vidal

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