BillerudKorsnas has released its results for 3Q16. CEO Per Lindberg states: ‘Once again we show a stable performance and I am happy to see that we deliver results as expected. Our production has stabilized and we have been producing in line with planned levels. The one issue for me is the lack of growth in Consumer Board. This is due to the production problems we suffered in previous quarters, but our view on the Consumer Board market has not changed and we expect to see the growth coming back as we catch up on inventory levels.’
Net sales and adjusted EBITDA in 3Q16 are on par with previous year’s performance and in line with our expectations which is very satisfactory. The company is not satisfied with the current lack of growth in the Consumer Board segment, but has put the production disturbances related to last year’s rebuilds behind it, and the anticipated improvements will come as it is now able to run capacity on higher levels to match market demand and growth. Unfortunately, at the end of the quarter the recovery boiler in Frövi experienced serious problems and was were forced to stop before the planned maintenance shutdown. The board machine can be run on lower capacity on external pulp but as a consequence additional costs for pulp and the repair of the recovery boiler will be seen in the coming quarter beyond previous estimates.
Overall the markets in all three business areas were stable and this is anticipated to continue. The brown sack paper market improved compared to previous quarter. The market demand and local pricing for NBSK pulp also remained stable in the quarter. The view on the Consumer Board market continues to be very positive. Local pricing has been stable and the company is not expecting any changes. Within Business area Corrugated Solutions the demand for fluting has strengthened throughout the quarter and local pricing was unchanged. Managed Packaging sales have continued to deliver good progress.
The company has high sustainability ambitions and performance, hence it makes employees proud when it is recognized and verified. During the quarter, it has been awarded the Gold of EcoVadis for the third consecutive year, and included in one of the world's most prestigious sustainability indexes, the Dow Jones Sustainability Europe Index. BillerudKorsnäs is the only European company in its category to be included.
BillerudKorsnäs wants to be a positive force in the development towards a sustainable future by challenging conventional packaging. One way of doing that is to find and invest in attractive companies in the early stages to eventually generate new business and solutions later on in the packaging value chain. ‘Internet of Packaging’ is one of several areas of focus, and through its venture company it now includes the investment in Kezzler. The innovation and design agency NINE recently achieved great success at Pentawards, the packaging world's finest award, through gold and bronze in the concept category.
Read the article online at: https://www.worldcement.com/europe-cis/21102016/performance-update-from-billerudkorsnas/