BillerudKorsnas' net sales for the 1Q 2020 declined by 2% to SEK 6 364 million ($649 million), compared to SEK 6 504 million ($663 million) in the 1Q 2019. Higher sales volumes were offset by lower sales prices compared to last year, primarily in Division Paper. Net sales for the quarter were positively impacted by currency effects by 2%.
BillerudKorsnas reports 1Q 2020 net profit of SEK 164 million ($16.7 million), down from SEK 451 million ($46 million) a year ago period.
Adjusted EBITDA decreased to SEK 791 million ($80.7 million), mainly due to reduced sales prices as well as KM7 start-up effects of SEK 200 million ($20.4 million). Lower fibre costs, currency effects and cost savings had all a positive impact on the result. Logistics challenges due to Covid-19 were mitigated without any significant effects.
Lennart Holm, Acting President and CEO, said: “The financial effects of the Covid-19 pandemic on our company have so far been limited, but looking forward the degree of uncertainty is significant. We continue to run our operations without any major disruptions and the demand for our products has remained solid. The demand for our products has overall been strong throughout the 1Q. However, prices for several of our grades continued to deteriorate, which is a continuation of the trend in the previous quarter. The impact of this on our net sales and profitability has been significant. Our biggest challenge continues to be Division Paper where lower prices resulted in declining sales and margins. Division Board performed well and Division Solutions had a decent 1Q considering the fact that a significant part of the business is depending on China.”
BillerudKorsnäs is one of the leading manufacturers of packaging paper made from virgin fibers.
