Arctic Paper S.A. generated revenues of over PLN 634.63 million in Q1 2011, 32.4% higher than in the same period of 2010. LFL revenue (excluding Grycksbo) stood at PLN 471,71 million and were 11.7% higher than in the 1st quarter of 2010. The company recorded a net loss in Q1 2011 of PLN 8.46 million, which was partly caused by higher amortization resulting from revaluation of assets acquired from Grycksbo.
In Q1 2011 the Group achieved an increase in sales volume by almost 20% v.s.Q1 2010, and by 5.7% v.s. Q4 2010. Like-for-like sales volume (i.e. excludingArctic Paper Grycksbo) grew by 1.3% v.s. Q1 2010 and 6.6% v.s. Q4 2010.
The production capacity utilization for all the Group’s mills together was 95% —practically the same as the average since the beginning of 2009.
In March 2011 the Group announced further increases in paper prices, the effects of which will be visible in the financial results in upcoming quarters.
Michał Jarczyński, CEO of Arctic Paper S.A., commented: "In the 1st quarter of 2011 we generated good sales revenue, accompanied by growth in sales volume as well as revenue in Polish zloty per tonne of paper. I would like to stress that despite the reduced demand for graphic fine paper observed in Europe this year, Arctic Paper Group increased its sales by about 1.3% in like-for-like terms, that is, without including the Arctic Paper Grycksbo paper mill. This demonstrates the effectiveness of the measures we are taking. Additionally, the lack of a clear revival in demand on the European market increased pressure on paper prices, which is why we had to wait until March 2011 to increase prices on selected markets. The effects of the increases will show up in our financial results in upcoming months."
