EBITDA from operating activities, which is stated before charging non-recurring expenses and recognising income related to the acquisition of Corenso, increased by Euro 3.5 million (20%) to Euro 20.9 million. This included EBITDA of Euro 2.2 million from one month of trading in the newly acquired Coreboard and Cores segment, while on a "like-for-like" basis, the EBITDA generated from the Packaging Papers activity improved by Euro 1.3 million (8%) to Euro 18.7 million.
Operating profit from continuing operations reduced by Euro 0.8 million to Euro 10.1 million due to a combination of the factors outlined above and to an increase in the depreciation charge in Packaging Papers following higher levels of capital expenditure in recent years.
Commenting on the results, Dermot Smurfit, Chairman of Powerflute said: “I am pleased to report that 2014 was another successful year for Powerflute, with improvement in the underlying profit and earnings per share from our Packaging Papers businesses. We were delighted to complete of the acquisition of the Corenso group of companies in December 2014, and remain excited about the future potential of the business and expect it will make a significant contribution to earnings per share in 2015 and beyond.
Packaging Papers has made an encouraging start to the year, with a good operational performance backed by favourable market conditions and exchange rates, resulting in earnings growth compared with the same period of the prior year. The new Coreboard and Cores segment is also performing well and good progress has been made with integration activities.
Despite the increase in borrowings resulting from the Corenso acquisition, the Group continues to have only moderate leverage and a strong balance sheet and is well positioned to pursue opportunities for the development of its businesses as they arise.”
Powerflute is a paper and packaging group. The Group currently has two main activities; Packaging Papers which trades under the name Powerflute and operates a paper mill in Kuopio, Finland producing a specialised form of Nordic semi-chemical fluting used in the manufacture of high-performance corrugated board; and Coreboard and Cores, which trades under the name Corenso and is a leading international manufacturer of high performance coreboard and cores, with coreboard mills in the United States and Europe and a network of core producing facilities in Europe, North America and China.
