Ence Group's net income and EBITDA registered year-on-year growth of 115% and 54% in 1Q 2018, respectively. 1Q 2018 net income increased to Euro 29.5 million from year-ago Euro 13.7 million while net revenue grows 12.7% to Euro 196.3 million.
Ence’s average pulp sales price increased by 29.2% year-on-year in 1Q 2018, driven by growth of 48.4% in the dollar denominated benchmark price, coupled with an incipient reduction in trade discounts, partially offset by average euro appreciation against the dollar of 15.4%.
Elsewhere, pulp sales volumes declined by 5.4% compared to 1Q 2017 due mainly to lower sales from inventories. In the 1Q 2017, the company sold 19,536 tonnes of pulp from inventories, compared to just 7,091 tonnes in 1Q 2018, with inventories at record lows of under 26,000 tonnes. The combination of the two factors drove growth in revenue from pulp sales of 22.1% to Euro 140 million in 1Q 2018.
EBITDA in the pulp business increased by 80%, driven by growth of 29% in average pulp sales prices, which offset a 5% decrease in sales volumes and a 7% increase in the cash cost.
Source: Lesprom Network