2Q net sales of BillerudKorsnäs were 5% higher than the same quarter last year. Net sales were SEK 5 898 million ($664 million) in 2Q 2018. The improvements were due to sustained favourable price development primarily for pulp, fluting, liner and sack paper, combined with favourable currency effects.

Packaging

BillerudKorsnäs reports 2Q net sales increase of 5%

2Q net sales of BillerudKorsnäs were 5% higher than the same quarter last year. Net sales were SEK 5 898 million ($664 million) in 2Q 2018. The improvements were due to sustained favourable price development primarily for pulp, fluting, liner and sack paper, combined with favourable currency effects. This was to some extent offset by lower sales volumes, as the company said in the press release received by Lesprom Network.

EBITDA for the 2Q amounted to SEK 203 million ($22.8 million), a decrease of 76% primarily related to provisions. EBITDA was negatively impacted by increased costs for wood and chemicals following a strong market demand, weather-related wood shortage, planned maintenance shutdowns as well as provisions.

The adjusted EBITDA margin was 11%. Production losses due to continued wood shortages had a negative impact of SEK 100 million ($11.3 million) on EBITDA. The planned and prolonged maintenance shutdowns at Gruvön and Skärblacka were carried out at a total cost of SEK 401 million ($45.2 million), which was SEK 66 million ($7.4 million) higher than expected due to certain start-up issues.

Petra Einarsson, President and CEO, said: “The 2Q was characterised by continued strong demand for innovative and sustainable packaging. Net sales in the quarter increased by 5% compared with the same period last year, mainly driven by higher sales prices. The increased sales prices have compensated for higher wood costs. However, both raw material costs and wood supply will continue to challenge our result and production. The production has been stable during the quarter, apart from the start-up issues related to the planned maintenance shutdowns. It is encouraging to note that four of our mills achieved production records, and that our growth investments are progressing according to plan. The new machine at Skärblacka has been started successfully.”

BillerudKorsnäs is one of the leading manufacturers of packaging paper made from virgin fibers.