Kotkamills Group Oyj
STOCK EXCHANGE RELEASE
30 November 2018, at 7:00 pm (CET + 1)
This is a summary of the January - September 2018 interim report. The complete report is attached to this release and is also available at www.kotkamills.com/fi/kotkamillsgroup/keyfinancials.
KOTKAMILLS INTERIM REPORT
July - September 2018 (7-9/2017)
The Group's revenue of EUR 82,8 million (EUR 72,5 million) from continuing operations improved by EUR 10,3 million from the same period a year ago mainly due to increased sales in the Consumer Boards segment.
The Group's EBITDA of EUR 3,2 million (EUR 2,7 million) increased slightly from the same period a year ago despite of prolonged maintenance shutdown of Kotka saturating base kraft production due to recovery boiler repair.
Consumer Boards segment EBITDA of EUR 1,5 million (EUR -2,9 million) stayed at the previous quarter level due to maintenance shutdown in August but was clearly better compared to the same period a year ago due to increased sales volumes.
Industrial Products segment EBITDA of EUR 0,5 million (EUR 5,5 million) was clearly offset by one-off effect of prolonged maintenance shutdown of Kotka saturating base kraft production due to recovery boiler repair. The delayed start-up together with the repair itself caused approximately EUR -3,2 million negative EBITDA effect compared to the same period a year ago.
Operating profit from continuing operations was EUR -0,9 million (EUR -5,2).
January- September 2018 (1-9/2017)
The Group's revenue of EUR 268,3 million (EUR 208,4 million) from continuing operations improved by EUR 59,9 million from the same period a year ago mainly due to increased Consumer Boards sales.
The Group EBITDA from continuing operations was EUR 15,5 million (EUR 5,1 million) following the improved impact of Consumer Boards business.
Operating profit from continuing operations was EUR 3,5 million (EUR -11,0 million).
Events in July - September 2018
Demand continued on good level during the third quarter. In Industrial Products segment, the delivery volumes of both saturating base kraft and wood products were lower than in the previous quarter mainly due to annual maintenance shutdown. The delivery volumes of Kotka saturating base kraft was further offset by one-off effect of prolonged maintenance shutdown due to recovery boiler repair.
The delivery volumes in the Consumer Boards segment was clearly higher than a previous year ago, but below the previous quarter due to annual maintenance shutdown.
|Revenue, EUR million||82,8||72,5||268,3||208,4||287,7|
|EBITDA, EUR million||3,2||2,7||15,5||5,1||28,8|
|Operating profit, EUR million||-0,9||-5,2||3,5||-11,0||5,7|
|Operating profit/ Revenue (%)||-1,0||-7,1||1,3||-5,3||2,0|
|Return on equity (%)||-23,9||-38,1||-32,7||-103,4||7,0|
|Equity ratio (%)||6,7||2,3||6,7||2,3||8,8|
|Equity ratio, adjusted (%)*||60,1||53,0||60,1||53,0||58,2|
|*Equity including the shareholder loans and the junior term loan|
The Group monitors capital by using an adjusted equity ratio based on the financial covenant, which is total equity added with shareholder loans and the junior term loan divided by total assets (which shall be at least 30% in the end of each reporting period). The Group's policy is to keep the adjusted equity ratio above 30%. There have been no breaches of the financial covenant of adjusted equity ratio in the current period.
Events after reporting date
There have not been any material events after the closing date.
Revenue of the fourth quarter in 2018 is estimated to be higher than in the third quarter despite of typically lower seasonal demand. Profit from continuing operations for the fourth quarter of 2018 is estimated to be clearly above the previous quarter's level due to increasing delivery volumes and higher sales prices partly offsetting estimated higher raw material prices.
Demand of all business segments is expected to stay on a good level, but changes in the global economic situation and geopolitical risks may have weakening impact on demand.
Currency exchange rate changes and possible further increases in raw material prices could adversely impact the Group's profit development.
Kotkamills Group Oyj
Board of Directors
For additional information, please contact:
CFO Petri Hirvonen, tel.+358 40 571 0834, firstname.lastname@example.org
Nasdaq Helsinki Ltd
Kotkamills Group in brief
Kotkamills is a responsible partner that delivers renewable products and performance to its customers' processes via product innovations created from wood, a renewable raw material. One of the key brands of the company include Absorbex® an innovative laminating paper product for the laminate, plywood and construction industries. Moreover, Kotkamills offers ecological, technically sound and visually attractive wood products for demanding joinery and construction. In summer 2016, Kotkamills started up a new board machine producing AEGLE(TM) Folding Boxboard and ISLA(TM) Food Service Boards, including the capability to add barriers on-machine. All Consumer Board material solutions are fully recyclable and repulpable.
Kotkamills has two production sites in Finland, located in Kotka and Imatra. The majority shareholder of Kotkamills is MB Funds, a Finnish private equity firm.
The information contained in this release shall not constitute an offer to sell or the solicitation of an offer to buy securities of Kotkamills Group Oyj in any jurisdiction.