Munksjö Oyj's Interim Report for January-March 2016: Clear improvement in operating margin
Helsinki, Finland, 2016-04-27 07:30 CEST (GLOBE NEWSWIRE) --
MUNKSJÖ OYJ, INTERIM REPORT, 27 April 2016 at 7:30 a.m. CEST
Munksjö Oyj's Interim Report for January-March 2016: Clear improvement in
operating margin
Highlights of the first quarter 2016
- Net sales were EUR 288.0 (280.2) million.
- EBITDA was EUR 31.0 (26.5) million and the EBITDA margin was 10.8% (9.5%).
There were no non-recurring items in the reporting period or in the
corresponding period last year.
- Operating result was EUR 16.3 (13.2) million and net result EUR 6.3 (9.7)
million.
- Earnings per share (EPS) was EUR 0.12 (0.19).
- Operating cash flow was EUR 3.6 (-4.6) million.
KEY FIGURES (MEUR) Jan-Mar Jan-Dec
2016 2015 Change, % 2015
Net sales 288.0 280.2 +3% 1,130.7
EBITDA (adj.*) 31.0 26.5 +17% 93.6
EBITDA margin, % (adj.*) 10.8 9.5 8.3
EBITDA 31.0 26.5 +17% 86.3
EBITDA margin, % 10.8 9.5 7.6
Operating result (adj.*) 16.3 13.2 +23% 40.0
Operating margin, % (adj.*) 5.7 4.7 3.5
Operating result 16.3 13.2 +23% 32.7
Operating margin, % 5.7 4.7 2.9
Net result 6.3 9.7 -35% 22.8
Earnings per share (EPS), EUR 0.12 0.19 -36% 0.44
Interest-bearing net debt 234.4 241.1 -3% 227.4
* Adjusted for non-recurring items
Unless otherwise indicated, the figures in parentheses refer to the figures for
the equivalent period in 2015. This financial report is unaudited. It is
published in Swedish, Finnish and English. In case of any discrepancies between
the three versions, the Swedish text shall prevail.
Comment from Munksjö's President and CEO, Jan Åström
"We had a good start to the year, as the implemented price increases had an
expected full effect from the first quarter onwards and we have now closed the
gap caused by increased pulp prices during 2015.
The market demand remained on a stable level during the first quarter of 2016.
The increased volumes during the first quarter were mainly related to higher
specialty pulp deliveries, as we last year during the first quarter built up
specialty pulp inventories in order to secure the service level during the
maintenance stop in the second quarter.
The improved profitability is a result of both our own actions related to the
plan to improve our profitability and more favourable input cost conditions.
Our EBITDA was the highest quarterly result in our history and provides a good
foundation for the continued work with the efforts and actions to achieve our
profitability target, an EBITDA margin of 12 per cent at the end of the year.
We continue to focus on value added solutions for our customers and have been
able to strengthen our leading positions in our niched specialty paper
segments."
Outlook
The demand outlook in 2016 for Munksjö's specialty paper products is expected
to remain stable and reflect the seasonal pattern.
The EBITDA margin in 2016 is expected to improve compared with 2015 driven by
the on-going profitability improvement plan including increased operational
efficiency, profitable growth, product and service quality leadership and
utilising the position as a market and innovation leader.
The annual maintenance and vacation shutdowns in the second and third quarter,
as well as the shutdowns at the end of 2016, are expected to follow the
seasonal pattern and to be carried out to about the same extent as in 2015. The
next maintenance shut down at the pulp production facility in Aspa in Sweden
will be carried out in September 2016 and will therefore affect the financial
result of the third quarter.
The cash flow effect of capital expenditure for fixed assets for 2016 is
expected to be EUR 35-40 million.
Profitability target to be achieved at the end of 2016
Munksjö's profitability target is to reach an EBITDA margin of 12 per cent at
the end of 2016. The drivers for the profitability improvement include
continued operational efficiency, profitable growth, product and service
quality leadership and utilising the position as a market and innovation
leader. Within operational efficiency, the majority of the planned actions
include measures to adjust our cost structure.
The EBITDA targets per business area are; 15-16 per cent for Decor, 12-13 per
cent for Release Liners, 15-16 per cent for Industrial Applications and 9-10
per cent for Graphics and Packaging.
Events after the end of the reporting period
Decisions taken by the Annual General Meeting 2016, including a return of
equity of EUR 0.30 per share, and the organisation meeting of the Board of
Directors.
The Munksjö Group
Jan-Mar Jan-Dec
MEUR 2016 2015 Change, % 2015
Net sales 288.0 280.2 +3% 1,130.7
EBITDA (adj.*) 31.0 26.5 +17% 93.6
EBITDA margin, % (adj.*) 10.8 9.5 8.3
EBITDA 31.0 26.5 +17% 86.3
EBITDA margin, % 10.8 9.5 7.6
Operating result (adj.*) 16.3 13.2 +23% 40.0
Operating margin, % (adj.*) 5.7 4.7 3.5
Operating result 16.3 13.2 +23% 32.7
Operating margin, % 5.7 4.7 2.9
Net result 6.3 9.7 -35% 22.8
Capital expenditure 9.9 8.9 11% 39.8
Employees, FTE 2,732 2,755 -1% 2,774
* Adjusted for non-recurring items
First quarter 2016
- Overall group delivery volumes increased mainly as a result of higher pulp
deliveries. In the corresponding period last year, the production facility for
specialty pulp built up inventories in order to secure the service level during
the maintenance stop.
- Net sales increased to EUR 288.0 (280.2) million, as higher volumes
compensated for the lower average price, driven by the lower sales price for
long fibre specialty pulp.
- EBITDA increased to EUR 31.0 (26.5) million and the EBITDA margin was 10.8%
(9.5%). There were no non-recurring items in the reporting period or in the
corresponding period last year. The profitability improvement was mainly driven
by lower variable costs, driven by the lower energy price, lower raw material
prices and actions related to the plan to reach the profitability target.
Currency hedge losses of EUR 0.1 (2.4) million were recorded in segment Other
in the quarter.
- The operating result was EUR 16.3 (13.2) million and net result EUR 6.3 (9.7)
million.
- In the reporting period, the currency hedging result impacting operating
profit amounted to EUR -0.1 (-2.4) million. Exchange losses on financial assets
and liabilities were EUR 2.6 (profit of 5.5) million and are reported in
financial items.
Webcast and conference call
A combined news conference, conference call and live webcast will be arranged
on the publishing day 27 April 2016 at 10:00 a.m. CEST (11:00 a.m. EEST, 8:00
a.m. GMT) at restaurant Savoy (Eteläesplanadi 14, 7th floor, Helsinki). The
report will be presented by President and CEO Jan Åström. The event will be
held in English.
The conference call and live webcast can be followed on the Internet and an
on-demand version of the webcast will be available on the same webpage later
the same day. To join the conference call, participants are requested to dial
one of the numbers below 5-10 minutes prior to the start of the event.
Webcast and conference call information
Finnish callers: +358(0)9 6937 9590
Swedish callers: +46(0)8 5065 3936
US callers: +1646 254 3362
UK callers: +44(0)20 3427 1910
Conference ID: 4697677
Link to the webcast: http://qsb.webcast.fi/m/munksjo/munksjo_2016_0427_q1
Future financial reports
The complete IR calendar is available on www.munksjo.com/investors. Munksjö's
next financial report is the interim report for January-June 2016, which is
published on Wednesday, 27 July 2016.
All financial reports are published in English, Finnish and Swedish and they
are also available at www.munksjo.com after the publication. Munksjö observes a
21 day silent period preceding the announcement of financial results.
The Annual Report 2015 was published on 9 March 2016 and includes the Financial
Statements for the year 2015, the Board of Director's report and the Auditors'
report as well as the Corporate Governance Statement. The Annual report, the
Corporate Governance Statement and a Remuneration Statement are available as
separate documents on www.munksjo.com.
For further information, please contact
Jan Åström, President and CEO, tel. +46 10 250 1001
Pia Aaltonen-Forsell, CFO, tel. +46 10 250 1029
Made by Munksjö - Intelligent paper technology
Munksjö is a world-leading manufacturer of advanced paper products developed
with intelligent paper technology. Munksjö offers customer-specific innovative
design and functionality in areas ranging from flooring, kitchens and
furnishings to release papers, consumer-friendly packaging and energy
transmission. The transition to a sustainable society is a natural driving
force for Munksjö's growth as the products can replace non-renewable materials.
This is what "Made by Munksjö" stands for. Given Munksjö's global presence and
way of integrating with the customers, the company forms a worldwide service
organisation with approximately 2,900 employees and 15 facilities located in
France, Sweden, Germany, Italy, Spain, Brazil and China. Munksjö's share is
listed on Nasdaq in Helsinki and Stockholm. Read more at www.munksjo.com.
Attachments:Munksjö Oyj_Q1_2016_ENG.pdf