The financial results of Arctic Paper Group for the 2nd quarter of 2014 kept the profitable pace of the first quarter. Thereby the first half of 2014 ended considerably better than the same period of 2013. The Group's EBITDA of PLN 101,2 m was an increase of PLN 65,5 m (over 183%) compared to first half of 2013. The Group's net result of PLN 22,4 m compares to a loss in 2013 of PLN - 97,9 m (partly due to a write-down in first half-year of 2013). Sales revenues in the 1st half of 2014 decreased slightly (by 1,7%) reaching PLN 1.558,4 m.
Besides external factors, such as favourable development of pulp prices and exchange rates, these positive figures indicate that the internal steps taken by the Group, both in Arctic Paper and in Rottneros, are starting to have an effect.
In terms of operations on the paper market (that is excluding Rottneros), Arctic Paper shows constructive and profitable figures such as EBITDA of PLN 63,3 m, compared to PLN 32,0 m (growth thereby 97,3%) for the first half of 2013. Net profit amounted to PLN 5,4 m (compared to a loss of PLN -82,5 m first half of 2013, related to write-downs). The sales revenue for the first half of 2014 reached PLN 1.181,2 m compared to PLN 1.215,4 m in the same period of 2013.
According to Euro-Graph of June 2014 the decline in prices continued on this competitive market in the second quarter. In effect, as of at the end of June 2014 the average prices were -5,1% down for coated and -4,7% for uncoated paper compared to the same month of 2013. However, the market did grow slightly in the first half of 2014, 0,7%, compared to the first half of 2013.
Utilization of production capacity of the Arctic Paper remained at 93% in the 2nd quarter (same as in the 1st quarter of 2014). Thereby the figure of utilization for the first half-year 2014, 93 %, up by 1,5 % compared to the six months prior.
"We have a very long perspective and a still winding road ahead of us. We don't believe in quick fixes. Our progress and gains so far are, outside of the positive external factors, due to continues internal cost measures and an extreme focus on sales and customer needs"
