Apr 02, 2013. /Lesprom Network/. Sequana's consolidated sales for the year were down 2.3% to Euro 3,852 million (down 4.3% at constant exchange rates), reflecting lower volumes for printing and writing papers in Europe and the United States on both the production and distribution sides of the business coupled with strong downward pressure on selling prices. Demand for specialty papers (Security solutions, Medical/Hospital) held firm and growth in Antalis’ non-paper businesses helped limit the decline in sales.

EBITDA came in at Euro 134 million, compared with Euro 135 million in 2011, giving an EBITDA margin of 3.5% (up 0.1 points). Lower volumes of printing and writing papers and downward pressure on selling prices were partially offset by lower raw material prices and a reduction in overheads.

Recurring operating income for the year totalled Euro 56 million, compared with Euro 89 million for 2011 (which included a Euro 25 million gain arising on changes to pension funds with no impact on EBITDA). Operating margin slipped 0.9 points to 1.4% of sales.

The Group posted a recurring net loss of Euro 5 million, compared with recurring net income of Euro 30 million in the previous year. Once net non-recurring expenses of Euro 114 million are factored in (including Euro 54 million related to asset impairment – with no cash impact – and Euro 52 million in restructuring costs), net loss attributable to owners was Euro 119 million.

Commenting on the year’s performance, Sequana’s CEO Pascal Lebard said: “Business was badly affected by the tough economic conditions we experienced in 2012 and there was a sharp drop in volumes of printing and writing papers. The structural decline of this sector was accentuated by the economic crisis in Europe and was accompanied by strong downward pressure on selling prices. But our Group proved resilient by keeping EBITDA stable year-on-year, thanks to lower raw material prices and a reduction in overheads. In the face of deteriorating market conditions, we accelerated the deployment of our transformation programme, which focuses on enhancing Arjowiggins' production model, and stepped up Antalis’ development in the packaging distribution sector. These measures will have a positive impact on our operating performance in 2013.”

Sequana’s Board of Directors will recommend to the shareholders at their Annual General Meeting that no dividend be paid for 2012.

Sequana is a global player in the paper industry with a presence over 5 continents in more than 44 countries, the company operates in the distribution (representing two thirds of its sales) and production of papers.