2016-07-27 11:20:04 CEST
2016-07-27 11:20:04 CEST
REGULATED INFORMATION
Munksjö Oyj - Half Year financial report
Munksjö Oyj's Interim Report for January-June 2016: Very strong quarterly performance in sales, profitability and cash flow
Helsinki, Finland, 2016-07-27 11:20 CEST (GLOBE NEWSWIRE) --
MUNKSJÖ OYJ, HALF YEAR FINANCIAL REPORT, 27 JULY 2016 AT 11:20 AM CEST
Very strong quarterly performance in sales, profitability and cash flow
Highlights of the second quarter 2016
- Net sales were EUR 302.9 (291.2) million.
- Adjusted EBITDA was EUR 40.1 (25.0) million and the adjusted EBITDA margin
was 13.2% (8.6%). Items affecting comparability (IAC) amounted to EUR 0.0
(-2.4) million.
- Operating result was EUR 26.7 (9.1) million and net result EUR 16.9 (2.7)
million.
- Earnings per share (EPS) were EUR 0.33 (0.05).
- Operating cash flow was EUR 36.8 (5.8) million.
- In June the Board of Directors approved a long-term share value based
incentive programme for senior executives and other key personnel.
Highlights of January-June 2016
- Net sales were EUR 590.9 (571.4) million.
- Adjusted EBITDA was EUR 71.1 (51.5) million and the adjusted EBITDA margin
was 12.0% (9.0%). Items affecting comparability (IAC) amounted to EUR 0.0
(-2.4) million.
- Operating result was EUR 43.0 (22.3) million and net result EUR 23.2 (12.4)
million.
- Earnings per share (EPS) were EUR 0.45 (0.24).
- Operating cash flow was EUR 40.4 (1.2) million.
KEY FIGURES Apr-Jun Jan-Jun Jan-Dec
MEUR 2016 2015 Change, 2016 2015 Change, 2015
% %
Net sales 302.9 291.2 4% 590.9 571.4 3% 1,130.7
EBITDA (adj.*) 40.1 25.0 60% 71.1 51.5 38% 93.6
EBITDA margin, % 13.2 8.6 12.0 9.0 8.3
(adj.*)
EBITDA 40.1 22.6 77% 71.1 49.1 45% 86.3
EBITDA margin, % 13.2 7.8 12.0 8.6 7.6
Operating result 26.7 11.5 132% 43.0 24.7 74% 40.0
(adj.*)
Operating margin, % 8.8 3.9 7.3 4.3 3.5
(adj.*)
Operating result 26.7 9.1 193% 43.0 22.3 93% 32.7
Operating margin, % 8.8 3.1 7.3 3.9 2.9
Net result 16.9 2.7 n.m. 23.2 12.4 87% 22.8
Earnings per share 0.33 0.05 n.m. 0.45 0.24 91% 0.44
(EPS), EUR
Interest-bearing net 222.6 260.8 -15% 222.6 260.8 -15% 227.4
debt
* Adjusted for items affecting comparability (IAC)
A change marked as n.m. indicates that the percentage change is not meaningful
Unless otherwise indicated, the figures in parentheses refer to the figures for
the equivalent period in 2015. This financial 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
“Our performance continued to improve during the second quarter and we
delivered the strongest result since the current Munksjö Group was formed in
2013. I am happy to see that we through our own actions and by focusing on
value added solutions for our customers have been able to deliver on our plan
with clear results.
Based on a good first quarter and a strong second quarter, our total delivery
volumes increased by four per cent during the first six months, when excluding
the specialty pulp business. All of our four business areas showed volume
growth, which was also positively reflected in their results. The annual
maintenance shut down in 2016 at the pulp production facility in Sweden will be
made in the third quarter instead of the second quarter. This change gave a
positive effect on our total volumes, net sales and the result compared to last
year.
We showed strong progress in profitability development and cash flow during the
first six months. The total profitability improvement amounted to EUR 20
million, of which approximately half was due to own actions related to the plan
to reach the profitability target of an EBITDA margin of 12 percent at the end
of 2016. The rest was mainly related to favourable cost conditions.
I am pleased to announce that as a step to further contribute to responsible
forest management, we joined the Forest Stewardship Council (FSC®) in the
second quarter. Renewable wood fibre is the basis for all our products and
therefore we proactively promote responsible forest management.”
Outlook
The demand outlook for the last six months of 2016 for Munksjö’s specialty
paper products is expected to remain stable compared with the current good
level and to reflect the seasonal pattern.
The annual maintenance and vacation shutdowns in the third quarter, as well as
the shutdowns at the end of 2016, are expected to follow the seasonal pattern
and to be carried out to about the same extent as in 2015. The next maintenance
shut down at the pulp production facility in Aspa in Sweden will be carried out
in September 2016 and will therefore affect the financial result of the third
quarter.
The EBITDA margin in 2016 is expected to improve compared with 2015 driven by
the on-going profitability improvement plan.
The cash flow effect of capital expenditure for fixed assets for 2016 is
expected to be EUR 35-40 million.
Plan to reach profitability target at the end of 2016
Munksjö’s profitability target is to reach an EBITDA margin of 12 per cent at
the end of 2016. The drivers for the profitability improvement include
continued operational efficiency, profitable growth, product and service
quality leadership and utilising the position as a market and innovation
leader. Within operational efficiency, the majority of the planned actions
include measures to adjust our cost structure.
Of the realised actions in the financial result in January-June 2016, the
majority were related to operational efficiency. Further information on the
actions related to the profitability improvement plan and their effect on the
financial result can be found under the heading Munksjö Group.
The EBITDA targets per business area are; 15-16 per cent for Decor, 12-13 per
cent for Release Liners, 15-16 per cent for Industrial Applications and 9-10
per cent for Graphics and Packaging.
Events after the end of the reporting period
- Gustav Adlercreutz, General Counsel and member of the Management Team, will
retire in February 2017 and will be succeeded by Andreas Elving.
The Munksjö Group
Apr-Jun Jan-Jun Jan-Dec
MEUR 2016 2015 Change, 2016 2015 Change, 2015
% %
Net sales 302.9 291.2 4% 590.9 571.4 3% 1,130.7
EBITDA (adj.*) 40.1 25.0 60% 71.1 51.5 38% 93.6
EBITDA margin, % 13.2 8.6 12.0 9.0 8.3
(adj.*)
EBITDA 40.1 22.6 77% 71.1 49.1 45% 86.3
EBITDA margin, % 13.2 7.8 12.0 8.6 7.6
Operating result 26.7 11.5 132% 43.0 24.7 74% 40.0
(adj.*)
Operating margin, % 8.8 3.9 7.3 4.3 3.5
(adj.*)
Operating result 26.7 9.1 193% 43.0 22.3 93% 32.7
Operating margin, % 8.8 3.1 7.3 3.9 2.9
Net result 16.9 2.7 n.m. 23.2 12.4 87% 22.8
Capital expenditure 8.0 11.1 -28% 17.9 20.0 -11% 39.8
Employees, FTE 2,752 2,785 -1% 2,742 2,768 -1% 2,774
* Adjusted for items affecting comparability (IAC)
Second quarter 2016
- Total group delivery volumes increased and were higher than in the
corresponding period last year in all four business areas. The delivery volumes
for specialty pulp in the corresponding period last year were affected by the
maintenance stop at the pulp production facility.
- Net sales increased to EUR 302.9 (291.2) million, as higher volumes more than
compensated for the lower average price.
- EBITDA adjusted for IAC increased to EUR 40.1 (25.0) million and the adjusted
EBITDA margin was 13.2% (8.6%). The positive result effect of higher volumes
and lower variable costs, driven mainly by operational efficiency related
actions, more than compensated for the negative result effect of the lower
average price.
- IAC amounted to EUR 0.0 (-2.4) million.
- The operating result was EUR 26.7 (9.1) million and net result EUR 16.9 (2.7)
million.
- In the reporting period, the currency hedging result impacting operating
profit amounted to EUR 0.1 (-1.3) million. Exchange losses on financial assets
and liabilities were EUR 0.5 (1.3) million and are reported in financial items.
January-June 2016
- Total group delivery volumes increased in all four business areas. The
delivery volume development was particularly strong in Release Liners and
Graphics and Packaging. The delivery volumes for specialty pulp in the
corresponding period last year were affected by the maintenance stop at the
pulp production facility.
- Net sales increased to EUR 590.9 (571.4) million, as higher volumes more than
compensated for the lower average price, mainly driven by the lower sales price
for long fibre specialty pulp.
- EBITDA adjusted for IAC increased to EUR 71.1 (51.5) million and the adjusted
EBITDA margin was 12.0% (9.0%). Higher delivery volumes had a positive effect
of EUR 10 million. This was offset by EUR 8 million as an effect of the lower
average price. Lower variable costs, driven mainly by operational efficiency
related actions, the lower energy price and lower raw material prices had a
positive result effect of EUR 23 million. Higher fixed costs had a negative
result effect of EUR 5 million, mainly as a result of accruals for incentive
plans and increased manning related to higher production volumes.
- Out of the total profitability improvement, amounting to EUR 20 million,
approximately half was related to actions related to the plan to reach the
profitability target.
- IAC amounted to EUR 0.0 (-2.4) million.
- The operating result was EUR 43.0 (22.3) million and net result EUR 23.2
(12.4) million.
- In the reporting period, the currency hedging result impacting operating
profit amounted to EUR -0.0 (-3.6) million. Exchange losses on financial assets
and liabilities were EUR 3.0 (profit of 4.1) million and are reported in
financial items.
Webcast and conference call
A combined news conference, conference call and live webcast will be arranged
on the publishing day 27 July 2016 at 2:00 p.m. CEST (3:00 p.m. EEST, 12:00
p.m. GMT) at Munksjö’s headquarters in Stockholm (WTC, Klarabergsviadukten 70,
Elevator D, 5th floor). 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 2310 1618
Swedish callers: +46 (0)8 5065 3934
US callers: +1 646 254 3368
UK callers: +44 (0)20 3364 5728
Conference ID: 3858429
Link to the webcast: http://qsb.webcast.fi/m/munksjo/munksjo_2016_0727_q2
For further information, please contact
Jan Åström, President and CEO, tel. +46 10 250 1001
Pia Aaltonen-Forsell, CFO, tel. +46 10 250 1029
Made by 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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