Sequana's 3Q 2016 sales dropped 10.7% to Euro 694 million on a like-for-like basis, i.e., a constant reporting structure for Arjowiggins (down 6.7% at constant exchange rates). Unfavourable FX fluctuations over the 3Q – which mainly impacted Antalis' businesses – amounted to Euro 33 million.
3Q 2016 EBITDA declined by 7.1% to Euro 22 million, mainly reflecting lower printing paper volumes in both production and distribution, the deterioration in Arjowiggins' product mix due to lower levels of business for the Security division, and unfavourable FX fluctuations. On the plus side, Sequana continued to benefit from lower fixed costs linked to Arjowiggins' industrial restructuring measures and from falling raw material and energy costs. EBITDA margin edged up 0.1 points to 3.1% of sales.
Recurring operating income dropped by 11% to Euro 10 million on a like-for-like basis (constant reporting structure for Arjowiggins).
Consolidated pro forma sales for the first nine months of 2016 came in at Euro 2,195 million, down 6.2% on
9M 2015 on a like-for like basis (constant reportingstructure for Arjowiggins), and down 3% at constant exchange rates.
Pro forma EBITDA grew by 7.5% like-for-like to Euro 74 million, up from Euro 69 million in the nine months to 30
September 2015. Lower overheads resulting from industrial restructuring measures, an improved product mix and falling raw material and energy costs helped offset the decline in printing and banknote paper volumes and the unfavourable forex impact. The pro forma EBITDA margin grew by 0.4 points to 3.4% of sales.
Pro forma recurring operating income was Euro 42 million, compared with Euro 31 million for 9M 2015. The pro forma operating margin came in 0.6 points higher at 1.9% of sales.
During the period, there was no significant change in the non-recurring expenses which had impacted the Group's H1 2016 results. Net loss attributable to owners was Euro 35 million for the period compared with a net loss of Euro 25 million for 9M 2015.
Sequana is a major player in the paper industry, boasting leading positions in each of its two businesses Antalis and Arjowiggins.
