In 2016 the Arctic Paper Group generated sales revenue of PLN 2.97 billion ($745.7 million), 2.3% higher than the year before. EBITDA was over PLN 249.6 million ($62.7 million), growth of 17.4% from 2015, and operating profit on continuing operations exceeded PLN 125 million ($31.4 million), up 24.7%, as the company said in the press release received by Lesprom Network.
Revenue from sales in the paper segment (excluding Rottneros) in 2016 was nearly PLN 2.22 billion ($557 million), 3.5% higher than in 2015. EBITDA rose to over PLN 148 million ($37.2 million), an improvement of 111.1% year-on-year.
Net profit on continuing operations rose to PLN 34.1 million ($8.6 million), as against a loss of PLN 7.2 million ($1.8 million) the previous year.
In 4Q 2016 the market for fine graphical papers continued to shrink, noting a decline of 6.1% (compared to 4Q 2015, according to EuroGraph data). In the same period Arctic Paper increased its sales volume by up 0.6%, thus strengthening its market position.
The average use of production capacity in 2016 was 96%, or 2% higher than in 2015.
Per Skoglund, acting CEO of Arctic Paper, commented on the recently completed year: “In the aspects of market presence, production efficiency and product development we have shown endurance, resulting in a good year 2016. Also, the Profit Improvement Program 2015/16 has now successfully met its target, with savings of PLN 46 million ($11.6 million) during 2016, and the remaining part in 1Q 2017, translating into growth in efficiency in the paper segment. Another positive factor was the decline in the cost of short-fibre pulp, the most important raw material used in our manufacturing.”
Arctic Paper S.A. is one of the leading manufacturers of high-quality graphical fine paper in Europe. The company produces coated and uncoated wood-free paper for demanding clients such as printers, publishers, newspaper publishers, advertising agencies, paper distributors and packaging producers.
