Arctic Paper S.A., the second-largest European producer of bulky book paper and one of the leading producers of high-quality graphic paper, generated revenue during the first half of 2012 of over PLN 1.3 billion, up 8.3% on H1 2011, and an EBITDA of almost PLN 91.8 million—almost double the figure for H1 2011. Operating profit in H1 2012 was almost PLN 31.1 million and net profit was almost PLN 17.7 million. This can be compared to losses in H1 2011.
In the second quarter of 2012, demand for high-quality paper in Europe was down 3.8% on Q1 2012 and down 0.7% on Q2 2011. In Q2 2012, Arctic Paper’s sales were up 4.8% year-on-year but down 6.2% quarter-on-quarter. Orders remained stable during the second quarter.
The company’s utilisation of its production capacity in Q2 2012 was high, which at 98% was up 6.6 pp on Q2 2011 and 1.2 pp on Q1 2012. The average utilisation of production capacity over the previous 12 months was around 95%.
The Group is continuing measures already under way to cut costs and optimise the product line. No significant investment projects were commenced in Q2 2012 although projects begun in previous quarters to help the Group achieve greater profitability have continued.
The Arctic Paper Group achieved good financial results in H1 2012. The high level of revenue can be attributed, among other things, to an increase in sales volume of 3.4%. Exchange rates also had a favourable impact on revenues, particularly PLN/EUR rates (+7.4%).
EBITDA in H1 2012 was over PLN 91.8 million, almost twice as high as H1 2011. The EBITDA margin in H1 2012 was 7%, compared to 3.9% in H1 2011.
In H1 2012, the Arctic Paper Group improved its operating result and net profit year-on-year significantly. Operating profit in H1 2012 was almost PLN 31.1 million, compared to a loss of almost PLN 16.4 million in H1 2011. Net profit in H1 2012 was almost PLN 17.7 million, compared to a loss of over PLN 50.1 million in H1 2011.
