Earnings impacted by planned maintenance shutdown
- NET TURNOVER decreased by 13 percent to 637 (730) MSEK. Excluding groundwood pulp, turnover fell by 1 percent. Turnover declined compared with the third quarter of 2023 as a result of lower delivery volumes.
- THE
LIST PRICE of NBSK pulp was 19 percent lower in both USD and SEK compared with the
fourth quarter of 2022. The list price in USD rose by 1 percent compared with the third quarter of 2023 but remained unchanged in SEK.
- PRODUCED VOLUME excluding groundwood pulp totalled 80.1 (76.6) thousand tonnes, an increase of 5 percent.
The Vallvik Mill had its annual maintenance shutdown during the quarter.
- SOLD VOLUME of sulphate pulp and CTMP totalled 84.5 (75.5) thousand tonnes.
- EBIT (operating loss) was -100 (1) MSEK. Compared with the same quarter in 2022, pulp prices were lower, while wood costs were higher. The result was also due to the maintenance shutdown at
Vallvik Mill .
- NET PROFIT/LOSS for the quarter was -64 (9) MSEK and for the full year 121 (565) MSEK. Earnings per share for 2023 totalled 0.79
(3.70) SEK .
- THE BALANCE SHEET remains strong. The equity/assets ratio was 66 (66) percent and available liquidity totalled 528 (747) MSEK. Net cash amounted to 105 MSEK.
- DIVIDEND In light of the profit for the year and the robust balance sheet, the Board of Directors proposes a dividend of
0.50 SEK per share.
Comments by the CEO - The result in Q4 was impacted by low pulp prices and planned maintenance shutdown
The result in the fourth quarter of -100 EBIT was a disappointment impacted by lower pulp prices in USD, higher variable costs and the annual maintenance shutdown at Vallvik. For full-year 2023, we delivered a satisfactory performance despite challenging external circumstances, primarily driven by strong volume growth and sound cost management. This achievement confirms that our methodical approach towards growth and development is yielding results. Our commitment to ongoing efficiency improvements, addressing customer needs and developing long-term growth niches, combined with our strong financial position, provide us with the confidence to ensure the continued growth of
The year 2023 was eventful, as
In the fourth quarter, earnings continued to be impacted by lower pulp prices in USD and higher variable costs. In addition, the annual maintenance shutdown at Vallvik affected profitability in line with the normal seasonal pattern. Net turnover decreased by 1 percent for comparable units compared with the same quarter last year, to 637 MSEK. EBIT stood at -100 MSEK, leading to EBIT for full-year 2023 of 139 MSEK, which translates to a margin of 5.0 percent. The outcome confirms that our commitment to growth and development at
Stable flow of raw materials
Our pulp wood flows remained stable throughout the quarter, largely owing to long and close relationships with our suppliers. The acquisition of Nykvist Skogs has enabled us to strengthen ties with several sawmills in recent years, which has had a positive impact on our woodchip supply. With good availability of pulp wood locally during the fourth quarter, import volumes from the Baltics were kept low, contributing to favourable margins.
Production developed well during the quarter, with a growth of 5 percent, excluding groundwood pulp. The shift towards CTMP specialisation at
Relatively stable pulp market
The pulp market remained relatively stable during the quarter, although it continued to be marked by significant uncertainty. Demand saw a upswing in the third quarter, attributed to lower prices and a reduction in supply. This trend largely paused during the fourth quarter, apart from the list prices that continued to rise. Our customers returned with stronger demand and increased their orders for pulp in line with their contracts, compared with earlier in 2023. The list price for NBSK bottomed at
New CEO for
Anna Jonhed was appointed CEO of
Work on Rottneros Packaging's investment in
In December, we became stakeholders in Blue Ocean Closures, a Swedish startup specialising in development of proprietary fibre-based packaging materials. They are pioneers in an exciting new field; dry formed, fibre-based closures like corks and caps. The aim is to replace current plastic solutions in the global market. The technology and material could potentially be used in many more applications that are currently based on fossil materials. We see this as a potential complement to our strong offering in wet-formed fibre trays.
Our robust finances are crucial to the Group's long-term development
Our strong balance sheet provides us with the foundation and peace of mind to focus on the long-term development of
I would like to extend my heartfelt thanks to all colleagues for their great dedication to
Lennart Eberleh
President and CEO
(For full report, see attached pdf)
This information is such information that
__________________________________________________________________________________
Reminder: Invitation to
All participants can follow the presentation via the web link:
Questions can be asked via the link in advance or during the presentation.
You can also watch the presentation afterwards via
and website: https://www.rottneros.com/investors/presentations/
The presentation will be held in English. Questions can be asked in English or Swedish.
__________________________________________________________________________________
For further information please contact:
Lennart Eberleh, President and CEO,
+46 (0)270 622 65, lennart.eberleh@rottneros.com
+46 (0)270 622 70, monica.pasanen@rottneros.com
Box 144, 826 23 Söderhamn
+46 (0)270 622 00
rottneros.com
info@rottneros.com
https://news.cision.com/rottneros-ab/r/rottneros-year-end-report-januari-december-2023,c3920478
https://mb.cision.com/Main/15260/3920478/2576350.pdf
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