The Arctic Paper Group generated significantly sounder financial results for 2014 than in the previous year. EBITDA was PLN 238.5 million ($62.7 million), growth of over 227%, operating profit exceeded PLN 116.6 million ($30.7 million), compared to a loss of PLN 151.6 million ($39.8 million) the year before, and net profit was PLN 78.2 million ($20.5 million). Sales revenues in 2014 were PLN 3.1 billion ($815 million), similar to the amount in 2013.
“Financially, all of our actions seek a single goal: stability,” said Wolfgang Lübbert, CEO of Arctic Paper. “Entering 2015 we have observed greater variability in exchange rates than in recent years. Such signals always demand our vigilance and care in taking decisions and our aim is to further reduce the ratio of net debt to EBITDA and to optimize working capital. The anticipated positive effects of the changes launched in mid-2013 to cut costs and optimize operations are clearly visible today. Our paper mill in Kostrzyn achieved record results at the level of production and sales, and the sales activity on Scandinavian markets gained a new, more efficient structure. We also centralized our logistics activity to improve the service level and effectiveness of the group.”
As expected, the market environment in the 4Q 2014 was volatile. Market prices of paper continued to fall. Similarly to the previous years, December was seasonally the weakest period on the paper market, which influenced the 4Q financial results of Arctic Paper.
The volume of paper sales by the Arctic Paper Group in 2014 was 0.4% higher than the year before, while the usage of the production capacity of the Arctic Paper mills during this period was 93%.
Compared to 2013, the average price of short-fibre pulp (BHKP) was down 5.8%, which is favourable to Arctic Paper. Meanwhile, the price of long-fibre pulp (NBSK) in 2014 was 7.9% higher than the year before, which in turn is advantageous for the results of Rottneros (data based on FOEX).
