Kotkamills Group Oyj
STOCK EXCHANGE RELEASE
30 August 2019, at 7:00 pm (CET + 1)
This is a summary of the January – June 2019 interim report. The complete report is attached to this release and is also available at www.kotkamills.com/company/financials.
KOTKAMILLS INTERIM REPORT
April – June 2019 (4-6/2018)
The Group’s revenue of EUR 90,5 million (EUR 97,9 million) decreased by EUR 7,4 million from the same period a year ago due to lower sales volumes in both segments.
The Group’s EBITDA of EUR 5,6 million (EUR 8,0 million) decreased by EUR 2,4 million from the same period a year ago due to lower volumes and higher production costs.
Consumer Boards segment EBITDA of EUR -0,1 million (EUR 1,7 million) decreased from the same period a year ago due to lower delivery and production volumes and higher production costs.
Industrial Products segment EBITDA of EUR 5,0 million (EUR 5,7 million) decreased by EUR 0,7 million compared to the same period a year ago mainly due to lower delivery volumes and higher production costs.
Operating profit was EUR 1,4 million (EUR 4,1).
January- June 2019 (1-6/2018)
The Group’s revenue of EUR 176,6 million (EUR 185,5 million) decreased by EUR 9,0 million from the same period a year ago due to decreased sales volumes in both Consumer Boards and Industrial Products segments.
The Group EBITDA was EUR 12,3 million (EUR 12,3 million).
Operating profit was EUR 3,9 million (EUR 4,4 million).
Events in April - June 2019
Demand continued on good level during the second quarter.
Delivery volumes in the Consumer Boards segment were lower than a year ago but increased from the previous quarter’s level.
In the Industrial Products segment, delivery volumes of saturating base kraft were lower than a year ago but increased from the previous quarter’s level. Delivery volumes of wood products were higher than a year ago and increased from previous quarter’s level.
|Revenue, EUR million||90,5||97,9||176,6||185,5||353,3|
|EBITDA, EUR million||5,6||8,0||12,3||12,3||23,2|
|EBITDA / Revenue (%)||6,2||8,2||7,0||6,6||6,6|
|Operating profit, EUR million||1,4||4,1||3,9||4,4||7,1|
|Operating profit / Revenue (%)||1,6||4,1||2,2||2,4||2,0|
|Profit (loss) of the period, EUR million||-10,8|
|Return on equity (%)||-16,6||5,6||-20,2||-8,5||-47,4|
|Equity ratio (%)||4,8||8,2||4,8||8,2||5,9|
|Equity ratio, adjusted (%)*||61,4||59,5||61,4||59,5||60,4|
|*Equity including 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 loan and the junior term loan and 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 third quarter in 2019 is estimated to be lower than in the second quarter due to the annual maintenance shutdown in August-September. Profit for the third quarter of 2019 is estimated to be higher than previous quarter’s level due to improving product portfolio in the Consumer Boards segment.
Demand of all business segments is expected to stay on 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
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™ Folding Boxboard and ISLA™ Food Service Boards, including the capability to add barriers on-machine. All Consumer Board material solutions are fully recyclable and repulpable.
Kotkamills’ production site is located in Kotka, Finland. 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.