Net sales

BillerudKorsnäs sees net sales increase by 75% in the second quarter

Swedish pulp and paper manufacturer BillerudKorsnäs recorded a growth in its net turnover of 75% in the second quarter of its fiscal year to 11.4 billion SEK (1.1 billion euros).

Net sales excluding currency effects increased by 72%, mainly due to the acquisition of Verso, which was completed on March 31, 2022, the company noted.

Verso, now known as Billerud North America, generated net sales of SEK 3.7 billion (€350 million) and sales volumes of 307 kilotonnes during the quarter.

BillerudKorsnäs President and CEO, Christoph Michalski, said: “Performance in the second quarter was exceptional across all geographies. […]. It was also the first quarter with a considerably broader product portfolio, manufacturing on two continents and no less than 5,900 employees. This creates a platform for future sustainable and profitable growth.”

Adjusted EBITDA increased to SEK 2.3 billion (€220 million), mainly due to the acquisition, price increases and an improved mix.

Billerud North America’s EBITDA amounted to 704 million SEK (67.2 million euros).

It was negatively affected by a non-recurring effect of approximately SEK 170 million (€16.2 million) due to the sale of inventories measured at fair value at the time of acquisition.

The company added that it had seen strong organic growth in Europe (+17%) and North America (+19%) during this period.

Operating profit amounted to 1.6 billion SEK (150 million euros), while net profit was 1.4 billion SEK (130 million euros).

Outlook

Despite the threat of recession, the company expects business to remain strong in Europe and North America due to high prices and “solid” demand for its products.

The company added that the positive pricing impact and improved mix will offset the higher costs.

Michalski added: “The war in Ukraine continues to impact commodity prices and uncertainty in Europe. We see a significant increase in the cost of wood, while the prices of other raw materials are stabilizing at a high level.

“Logistics in Europe and overseas continues to be a significant challenge, both for availability and reliability of transport. The situation in North America is slowly improving with stable wood costs, stabilization costs for other raw materials and an improving logistics situation.

Read more: BillerudKorsnäs to explore pulp production with Viken Skog

© 2022 European supermarket magazine – your source for the latest packaging news. Article by Dayeeta Das. Click on subscribe register for ESM: European Supermarket Magazine.