Pulp and paper manufacturer Billerud has announced that it expects second-quarter results below market expectations due to lower sales volume and revaluation of finished goods inventory.
The Swedish firm expects EBITDA for the quarter to range between SEK 100 (€8.6 million) - SEK 200 million (€17.2 million).
The company attributed lower sales volumes to lower demand resulting in even further production curtailments.
The volume drop was mainly seen in North America and will have an impact worth SEK 280 million (€24.1 million).
This is in addition to the idling of the Escanaba mill, which resumed operations as planned on 8 May.
The cost impact of revaluation of finished goods inventory compared to the first quarter will not affect the cash flow, the company noted.
Efficiency Enhancement Programme
Billerud also announced that it is to accelerate the delivery of the efficiency enhancement programme, launched in January.
As part of the programme, the company hopes to increase its EBITDA from SEK 400 million (€34.4 million) to SEK 600 million (€51.6 million) this year.
The impact of the programme is expected to be seen during the second half of the year.
The effects of the efficiency enhancement programme will be achieved across Billerud’s supply chain, production and commercial operations.
Financial Reporting Structure
The company has also implemented IFRS 8 for its financial reporting structure, effective 1 April 2023.
In the January-June 2023 interim report, the group’s paper and packaging materials’ net sales, EBITDA, operating profit, and sales volumes will be reported in two operating segments.
It will be based on the region in which the products are manufactured, comprising Region Europe and Region North America.
Comparable figures for prior periods will be restated in the January-June 2023 interim report, Billerud noted.
© 2023 European Supermarket Magazine – your source for the latest packaging news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.
