The Board of Directors of Europac Group (Papeles y Cartones de Europa S.A.) has approved the results for the 1Q 2017, which record net profit of Euro 11 million, 9.5% up on the same period last year. In this regard, there was a noteworthy fall in finance costs, 45% down on last year, as a result of the lower debt volume and the novation of the syndicated loan signed last December.
Furthermore, sales rose by 7.2% to Euro 282 million. Consolidated EBITDA amounted to Euro 31 million, 3.2% up on last year, while consolidated EBIT grew by 4.3% to Euro 19 million.
These results were achieved in a market context characterised by a fall in paper sales prices and an increase in the price of the raw material compared with the same period of 2016. Specifically, according to sector data, between 1 January and 31 March this year, the price of recovered paper rose by 17%, while the sales prices of kraftliner paper and recycled paper fell by 3% and 5%, respectively.
However, the market behavior was offset by the increase in sales volumes in the paper and packaging business lines, as well as the continuity of the internal operational and commercial management projects. All of the above led to an increase in the year-on-year EBITDA margin of 1.2 percentage points to 15.7%.
José Miguel Isidro, Executive Chairman of Europac, states that, “these are good results in an adverse scenario, which demonstrate the strength and soundness of the company’s activity”.
The Europac Group (Papeles y Cartones de Europa, SA) is an integrated operator with activities in all areas of the paper and packaging industry value chain, from end-to-end waste management and forestry operations for the procurement of the raw materials necessary for the production of recycled paper and kraftliner at the Group’s plants in Spain, France and Portugal, to the manufacture of cardboard sheets and boxes as end products.
