(Tables included in attached PDF)
Second quarter 2014
· Net sales increased with 2% and adjusted operating profit increased with 44%
compared to the second quarter 2013. Improvements were due to improved product
mix and volumes, as well as more favourable exchange rates and synergies.
· Compared to the previous quarter net sales and adjusted operating profit
decreased due to periodic maintenance shutdowns.
· During the quarter the group has restructured the debt portfolio securing a
healthy debt profile with improved margins.
January-June 2014 compared with the same period in 2013
· Net sales has increased with 3% due to mix, volume and more favourable
currency exchange rates.
· The adjusted operating profit has improved with SEK 260 million due to
synergies, volume, mix and a weakened SEK.
· Synergies of approximately SEK 154 million have impacted the first six
months compared to the same period last year.
· Demand and order situation is expected to remain stable during the third
quarter 2014 for all business areas.
· Average prices in local currency are anticipated to stay on current level
for the third quarter 2014 for business areas Packaging Paper and Consumer
Board. Meanwhile the increased gap between recovered fibre and primary fibre
grades is leading to an increased pressure on primary fibre based prices within
the business area Containerboard. Due to increased production capacity in Sweden
from converted fine paper machines especially white kraftliner prices are facing
· Wood prices are expected to stay on current level for the second half of
· The target of approximately SEK 530 million in annual synergies and savings
is unchanged, and is expected to be reached during 2014. Estimated non-recurring
costs for realising the synergies are increased from approximately SEK 200
million to approximately SEK 225 million.
Comments by BillerudKorsnäs’ CEO Per Lindberg:
Stable second-quarter results
“We deliver a strong and stable result for the second quarter. Our adjusted
operating profit reached SEK 467 million and our operating margin was 9%.
Overall, I am pleased with our financial performance. The market place has been
quite good with solid demand and stable prices within all business areas.
Business area Packaging Paper has managed to keep the prices stable during the
quarter in spite of increased capacity on the market, and has increased prices
on new orders within the sack segments thanks to a seasonally strong demand.
Within business area Consumer Board we have launched the next generation of
Cartonboard products on the market, which has been very well received by
customers. Business area Containerboard has delivered a stable result for the
second quarter but is beginning to feel a real pressure from the increased
capacity on the market.
We continue with our ambition “Challenging conventional packaging for a
sustainable future” with the aim of increasing the level of innovation and
leadership. During the quarter we have received confirmation in several areas
that we are right on target with our mission. Several countries are putting
regulations in place for reducing the use of plastics in packaging. We offer
sustainable alternatives to several plastic applications, and sustainability is
our top priority. We have received recognition from both EcoVadis and "oekom
research", meaning that the company is acknowledged for its sustainability work.
During the quarter, we have also made a decision to further improve the
environmental profile of the company through a major investment in Gävle.
Following our ambition to increase innovation and product leadership, we have
during the quarter decided to invest in next generation fluting at Gruvön,
enhancing both product performance as well as machine capacity. On the more
innovative side, BillerudKorsnäs and Berghs School of Communication are giving
Spotify a physical form. It is this year’s edition of a packaging design contest
for students at Berghs and this is the first time an online brand will be
During the first half of 2014 we have delivered an operating margin of 10%, and
a growth in sales volumes over last year with 4%, in line with our profitable
growth targets and our long term strategy. The integration work has progressed
as planned and as already communicated, the realisation of synergies is
happening faster than first planned. All employees have done a fantastic work
all across the company, in numerous different projects that constitutes the
integration program. However, the pace of integration in combination with
synergy-related incentives will increase the non-recurring costs for realising
the synergies with approximately SEK 25 million for the year. It is my belief
that this is money well spent.’’
BillerudKorsnäs’ President and CEO Per Lindberg and CFO Susanne Lithander will
present the interim report at a press and analyst conference at 11.00 CET on
Monday 21 July 2014.
Venue: BillerudKorsnäs head office , Frösundaleden 2b, Solna, Stockholm, Sweden.
For further information, please contact:
Per Lindberg, President and CEO +46 (0)8 553 335 00
Susanne Lithander, CFO, +46 (0)8 553 335 00
The information in this report is such that BillerudKorsnäs AB (publ) is obliged
to disclose under the Swedish Securities Market Act and was submitted for
publication at 10.00 CET on 21 July 2014. This report has been prepared in both
a Swedish and an English version.
BillerudKorsnäs – Packaging manufacturers and brand owners are offered added
value in the form of brand-strengthening, productivity-boosting and environment
-enhancing packaging solutions. BillerudKorsnäs has a world-leading market
position within primary fibre-based packaging paper. The company has annual
sales of around SEK 20 billion and is listed on NASDAQ OMX Stockholm.
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