Release Date: October 30, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Nordic Paper Holding AB (STU:NPH, Financial) reported a record net sales level for Q3, reaching SEK1.1 billion, a 2% increase compared to the same period last year.
- Sales prices increased by 3% compared to Q3 2023, contributing positively to the company's revenue.
- The Natural Greaseproof segment showed strong performance with a 2% increase in net sales and a 14.2% EBITDA margin, driven by higher sales volumes and prices.
- The company maintains a healthy net debt to EBITDA ratio of 1.4, despite ongoing investments in Bäckhammar.
- Nordic Paper Holding AB (STU:NPH) has strong long-term relationships with customers, particularly in Japan, which supports stable demand and sales.
Negative Points
- The EBITDA margin for Q3 was slightly lower at 9.6% compared to last year, impacted by higher maintenance costs in the Kraft Paper segment.
- There are signals of a slowdown in the Kraft Paper market, which may affect future demand and sales.
- The Kraft Paper segment experienced a decrease in EBITDA to SEK26 million, with a margin of 4.5%, primarily due to increased maintenance costs.
- The company anticipates a negative impact on Q4 sales volumes due to the maintenance stop in Bäckhammar.
- Fixed costs have increased compared to the same period last year, largely due to higher maintenance-related expenses.
Q & A Highlights
Q: Do you have any relationships with the new owner, and are there any intersections at all?
A: Anita Sjolander, CEO: As part of the ongoing process, we ensure there are no such connections. Currently, there is no impact on the relationship between ourselves and SVP.
Q: How much CapEx have you spent on the Bäckhammar project as of now?
A: Niclas Eriksson, CFO: We have spent approximately SEK350 million on the Bäckhammar project.
Q: Can you elaborate on the profitability difference between Kraft Paper and Greaseproof paper results?
A: Anita Sjolander, CEO: The Kraft Paper segment is affected by increased maintenance costs at Bäckhammar, while the Greaseproof segment has achieved a new level of profitability. The two segments move differently in a business cycle, which is a strength for Nordic Paper.
Q: What is the outlook for the Kraft Paper segment in the coming quarter?
A: Anita Sjolander, CEO: We expect a continued decrease in demand for the Kraft Paper segment in Q4, with average sales prices remaining unchanged compared to Q3.
Q: How have currency fluctuations affected your financial results?
A: Niclas Eriksson, CFO: Currencies have been slightly weaker towards the SEK in Q3 compared to the same period last year, providing a positive effect on EBITDA due to realized derivatives.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
