Market: Packaging Paper & Board
17 July, 22:13
Bong's consolidated sales in January – June 2017 reached SEK 1,026 million ($123 million). Exchange rate fluctuations had a positive impact on sales of SEK 17 million ($2 million) compared with 2016, as the company said in the press release received by Lesprom Network.
The main reason for the drop in sales is the continued downturn in the envelope market, which resulted in both lower volumes and pricing pressures which had a negative impact on Bong’s gross earnings.
Despite lower sales, 1H 2017 operating profit amounted to SEK 26 million ($3.1 million), due to the new lower cost structure after the restructuring programs.
2Q 2017 consolidated sales decreased to SEK 481 million ($58 million), compared to SEK 500 million ($60.2 million). Exchange rate fluctuations had a positive impact on sales of SEK 12 million ($1.4 million) compared with 2016.
Despite lower sales, 2Q operating profit amounted to SEK 7 million ($0.8 million), due to the lower cost structure as a result of the previous restructuring programs. Net financial items for the period, excluding non-recurring items, amounted to SEK -12 million ($1.4 million).
Bong is one of the leading providers of specialty packaging and envelope products in Europe and offers solutions for distribution and packaging of information, advertising materials and lightweight goods.