Kotkamills Group Oyj


29 November 2019, at 7:00 pm (CET + 1)

This is a summary of the January – September 2019 interim report. The complete report is attached to this release and is also available at www.kotkamills.com/company/financials.


July – September 2019 (7-9/2018)

The Group’s revenue of EUR 82,2 million (EUR 82,8 million) decreased by EUR 0,6 million from the same period a year ago following the decreased revenue in Consumer Boards segment.  

The Group’s EBITDA of EUR 5,7 million (EUR 3,2 million) increased by EUR 2,5 million from the same period a year ago due to lower costs. Compared to the previous quarters the profitability was burdened by the planned maintenance shutdown in August-September.

Consumer Boards segment EBITDA of EUR 3,4 million (EUR 1,5 million) increased EUR 1,9 million from the same period a year ago due to lower production costs.  

Industrial Products segment EBITDA of EUR 1,3 million (EUR 0,5 million) increased by EUR 0,8 million compared to the same period a year ago mainly due to higher delivery volumes and lower operating costs.

Operating profit was EUR 1,4 million (EUR -0,9).

January – September 2019 (1-9/2018)

The Group’s revenue of EUR 258,8 million (EUR 268,3 million) decreased by EUR 9,5 million from the same period a year ago due to decreased sales volumes in both Consumer Boards and Industrial Products segments.

The Group EBITDA of EUR 18,0 million (EUR 15,5 million) increased EUR 2,7 million due to increased sales prices in Consumer Boards segment and decreased operating costs.

Operating profit was EUR 5,4 million (EUR 3,5 million).

Events in July – September 2019

Demand continued on good level overall during the third quarter.

The annual maintenance shutdown took place during August-September.

Delivery volumes in the Consumer Boards segment were lower than a year ago and decreased from previous quarter’s level. Sales prices increased slightly from both previous year’s and previous quarter’s levels.

In the Industrial Products segment, delivery volumes of saturating base kraft were higher than a year ago but decreased from the previous quarter’s level. Delivery volumes of wood products were higher than a year ago and decreased from previous quarter’s level.

Key figures


Group Total     
Revenue, EUR million82,282,8258,8268,3353,3
EBITDA, EUR million5,73,218,015,523,2
EBITDA / Revenue (%)6,93,96,95,86,6
Operating profit, EUR million1,4-0,95,43,57,1
Operating profit / Revenue (%)1,8-1,02,11,32,0
Profit (loss) of the period, EUR million    -10,8
Return on equity (%) -33,2-23,9-52,4-32,7-47,4
Equity ratio (%)3,56,73,56,75,9
Equity ratio, adjusted (%)*61,960,161,960,160,4
 *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.      

Near-term outlook

Revenue of the fourth quarter in 2019 is estimated to be higher than in the third quarter despite of the typically lower seasonal demand. Profit for the fourth quarter of 2019 is estimated to be higher than the previous quarter’s level due to increasing volumes in all segments.  

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

For additional information, please contact:
CFO Petri Hirvonen, tel.+358 40 571 0834, petri.hirvonen@kotkamills.com
Nasdaq Helsinki Ltd
Key media

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.



Kotkamills Group Oyj Interim Report 2019_Q3