Munksjö Oyj's Interim Report for January-March 2015: Stable EBITDA margin and improved net earnings

Munksjö Oyj's Interim Report for January-March 2015: Stable EBITDA margin and improved net earnings

Munksjö Oyj's Interim Report for January-March 2015: Stable EBITDA margin and improved net earnings
Helsinki, Finland, 2015-04-29 07:30 CEST (GLOBE NEWSWIRE) --
MUNKSJÖ OYJ, INTERIM REPORT, 29 April 2015 at 7:30 a.m. CEST

Munksjö Oyj's Interim Report for January-March 2015: Stable EBITDA margin and
improved net earnings

Highlights of the first quarter 2015

- Net sales were EUR 280.2 (287.9) million.

- Adjusted EBITDA was EUR 26.5 (27.4) million and the adjusted EBITDA margin
was 9.5% (9.5%). Currency hedge losses of EUR 2.4 (0.1) million were recorded
in segment Other in the first quarter.

- Operating result adjusted for non-recurring items was EUR 13.2 (13.7)
million. There were no non-recurring items in the reporting period.

- Operating result was EUR 13.2 (12.7) million and net result EUR 9.7 (4.3)
million.

- The currency hedge loss was more than compensated for by exchange gains on
financial assets and liabilities of EUR 5.5 (-1.1) million.

- Earnings per share (EPS) were EUR 0.19 (0.08).

- Operating cash flow was EUR -4.6 (-2.6) million.


KEY FIGURES (MEUR) Jan-Mar Jan-Dec
2015 2014 2014
Net sales 280.2 287.9 1,137.3
EBITDA (adj.*) 26.5 27.4 105.0
EBITDA margin, % (adj.*) 9.5 9.5 9.2
EBITDA 26.5 26.4 99.4
EBITDA margin, % 9.5 9.2 8.7
Operating result (adj.*) 13.2 13.7 51.0
Operating margin, % (adj.*) 4.7 4.8 4.5
Operating result 13.2 12.7 45.4
Operating margin, % 4.7 4.4 4.0
Net result 9.7 4.3 7.7
Earnings per share (EPS), EUR 0.19 0.08 0.14
Interest-bearing net debt 241.1 237.6 225.6

* Adjusted for non-recurring items

Unless otherwise indicated, the figures in parentheses refer to the figures for
the equivalent period in 2014. This interim report is unaudited. It is
published in Swedish, Finnish and English. In case of any discrepancies between
the three versions, the Swedish text shall prevail.


Comment from Munksjö's President and CEO, Jan Åström

"The first quarter of the year was stable and the adjusted EBITDA-margin was on
the same level as in the corresponding period last year. As the first quarter
last year was strong in terms of volumes, I am satisfied that we reached a
similar profitability despite the lower volumes.

The net effect of the foreign exchange movements during the quarter did not
have a noticeable effect on the combined result for the business areas. The
changes in the foreign exchange rates did however affect the result development
for the respective business areas. The effect was positive for the business
operations located in Sweden. Munksjö's business operations in Sweden comprise
the pulp production in Aspa, which is included in the business area Release
Liners and the production facilities in Billingsfors and Jönköping, both of
which are included in the business area Industrial Applications. For the
business areas Decor, Release Liners and Graphics and Packaging that have a
high share of purchased pulp the effect was negative.

The rolling nine-month foreign exchange hedges for flows in USD and SEK had a
negative result effect of about MEUR 2.4 in the first quarter. This
currency-related loss is recorded for in segment Others and does not affect the
results of the business areas.

In order to secure the service level during the maintenance stop at the
production facility for pulp in Aspa at the end of April, the inventory levels
of pulp were increased, which had a negative effect on the working capital in
the quarter.

The efforts to achieve our profitability target, an EBITDA margin of 12 per
cent at the end of 2016 continue according to plan."


Outlook

The demand outlook of specialty paper products for the second quarter of 2015
is stable.

Prices of Munksjö's specialty paper products in local currency are expected to
gradually increase in the second quarter of 2015 compared to the first quarter
of 2015.

As previously communicated, the interval between the maintenance shutdowns at
the Aspa facility will be prolonged from 12 to 18 months and the next
maintenance shutdown will be implemented in the second quarter of 2015 and the
change of interval enters into force thereafter. The effect of the maintenance
stop on the result is expected to be around EUR -4 million.

The annual maintenance and vacation shutdowns in the second and third quarter
as well as the seasonal shutdowns at the end of 2015 are expected to be carried
out to about the same extent as in 2014.

The cash flow effect from capital expenditure for fixed assets for 2015 is
expected to amount to about two thirds of the depreciation level.


The Munksjö Group

Jan-Mar Jan-Dec
MEUR 2015 2014 2014
Net sales 280.2 287.9 1,137.3
EBITDA (adj.*) 26.5 27.4 105.0
EBITDA margin, % (adj.*) 9.5 9.5 9.2
EBITDA 26.5 26.4 99.4
EBITDA, margin % 9.5 9.2 8.7
Operating result (adj.*) 13.2 13.7 51.0
Operating margin, % (adj.*) 4.7 4.8 4.5
Operating result 13.2 12.7 45.4
Operating margin, % 4.7 4.4 4.0
Net result 9.7 4.3 7.7
Capital expenditure 8.9 5.5 35.1
Employees, FTE 2,755 2,770 2,765

* Adjusted for non-recurring items


First quarter 2015

Net sales were EUR 280.2 (287.9) million.

EBITDA adjusted for non-recurring items decreased to EUR 26.5 (27.4) million
and the adjusted EBITDA margin was 9.5% (9.5%). Currency hedge losses of EUR
2.4 (0.1) million and costs of EUR 0.6 (0.0) million related to the
share-related incentive programme were recorded in segment Other in the first
quarter. There were no non-recurring items in the reporting period.

The operating result was EUR 13.2 (12.7) million and net result EUR 9.7 (4.3)
million.

The currency hedge loss was more than compensated for by exchange gains on
financial assets and liabilities of EUR 5.5 (-1.1) million.


Webcast and conference call

A combined news conference, conference call and live webcast for investors,
analysts and media will be arranged on the publishing day 29 April 2015 at
10:00 a.m. CEST (11:00 a.m. EEST, 9:00 a.m. UK time) at restaurant Savoy, room
Kabinetti 2 (Eteläesplanadi 14, 7th floor, Helsinki). The report will be
presented by President and CEO Jan Åström. The event will be held in English.

The conference call and live webcast can be followed on the Internet and an
on-demand version of the webcast will be available on the same webpage later
the same day. To join the conference call, participants are requested to dial
one of the numbers below 5-10 minutes prior to the start of the event.

Webcast and conference call information

Finnish callers: +358 (0)9 2313 9201
Swedish callers: +46 (0)8 5052 0110
US callers: +1 334 323 6201
UK callers: +44 (0)20 7162 0077
Conference ID: 952567
Link to the webcast: http://qsb.webcast.fi/m/munksjo/munksjo_2015_0429_q1/


For further information, please contact

Jan Åström, President and CEO, Tel. +46 10 250 1001
Pia Aaltonen-Forsell, CFO, Tel. +46 10 250 1029

 


Munksjö - Intelligent paper technology

Munksjö is a world-leading manufacturer of advanced paper products developed
with intelligent paper technology. Munksjö offers customer-specific innovative
design and functionality in areas ranging from flooring, kitchens and
furnishings to release papers, consumer-friendly packaging and energy
transmission. The transition to a sustainable society is a natural driving
force for Munksjö's growth as the products can replace non-renewable materials.
This is what "Made by Munksjö" stands for. Given Munksjö's global presence and
way of integrating with the customers, the company forms a worldwide service
organisation with approximately 2,900 employees and 15 facilities located in
France, Sweden, Germany, Italy, Spain, Brazil and China. Munksjö's share is
listed on Nasdaq in Helsinki and Stockholm. Read more at www.munksjo.com.

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