EBITDA totalled Euro 20 million for the 3Q 2014, down Euro 5 million (or 22.4%) on the same period in 2013, chiefly reflecting the decline in standard coated and fine paper volumes which was partly offset by lower raw material and energy costs. EBITDA margin slipped 0.9 points to 2.4% of sales.
The ongoing operational restructuring plan will have a positive impact on EBITDA as from second-half 2015.
Consolidated sales for the first nine months of 2014 came in at Euro 2,537 million, up 4.3% at constant exchange rates on the same period in 2013 (including 7% growth contributed by Xerox’s office paper distribution business), and up 3.4% on a reported basis. Xerox’s office paper distribution business, consolidated for the full nine-month period, accounted for around Euro 180 million of the growth in sales.
EBITDA edged up 1.3% year-on-year to Euro 88 million. Sequana benefited from the positive impact of lower overheads, the decrease in raw material prices and an improved product mix. EBITDA margin remained stable year-on-year at 3.5% of sales. Recurring operating income was Euro 50 million, up from Euro 31 million for the first nine months of 2013 which included a Euro 4.5 million gain arising on changes to pensions plans.
In the nine months to 30 September 2014, Sequana generated net attributable income of Euro 136 million – which included the positive non-recurring impacts of the Group’s financial restructuring – versus a net loss of Euro 58 million in the same period one year earlier.
These restructuring impacts were recorded in the 3Q and generated net income of approximately Euro 250 million. They mainly consist of debt write-offs obtained on existing Group credit facilities.
Consolidated net debt fell by Euro 276 million to Euro 441 million, down from Euro 717 million at 30 September 2013, reflecting the positive impact of the Group’s financial restructuring.
Sequana is a major player in the paper industry, boasting leading positions in each of its two businesses Antalis and Arjowiggins.
