BillerudKorsnäs, a leading manufacturers of packaging paper, reported 33.2% increase of EBITDA amid 3.1% increase of net sales in 1Q2017 y-o-y. According to the announcement, the company’s net sales accounted for SEK 5,636 million (around USD 640 million), generating EBITDA of SEK 923 million in the period (16.4% margin).
Per Lindberg, BillerudKorsnäs’ CEO, commented:
“The first quarter of 2017 saw growth on the back of high demand in the markets across all business areas. Sales are showing better than expected growth, and our production is in fact at an all-time high for a single quarter. However, our operating profit during the quarter suffered from spillover effects from 2016, and we have as a consequence undertaken significant measures to address both our start-up performance as well as quality performance.
Two of the key elements in our growth strategy and production capacity are our major ongoing investments in Skärblacka and Gruvön. We are glad to see that the start-up of these projects has been successful and that they are well under way. Together with new solution sales initiatives we have laid a strong foundation for continued growth.”
In 4Q2016 BillerudKorsnäs decreased profitability amid higher sales.
Earlier BillerudKorsnäs expected negative impacts for the company’s first quarter results from emanating from production during the second half of 2016 and start-up costs for the Rockhammar re-build late 2016.
The company is one of the leading manufacturers of packaging paper made from virgin fibers. It is headquartered in Solna, Sweden and emerged in 2012 from the merger of Billerud and Korsnäs and Voith Paper is a division of the Voith Group.