Munksjö Oyj - Financial Statement Release

Munksjö Oyj's Financial Statements Bulletin 2015: Strong cash flow in the fourth quarter. Full year profitability affected by higher raw material prices.

Helsinki, Finland, 2016-02-11 07:30 CET (GLOBE NEWSWIRE) -- 
MUNKSJÖ OYJ, FINANCIAL STATEMENTS BULLETIN 11 February 2016 at 7:30 a.m. CET

Strong cash flow in the fourth quarter. Full year profitability affected by
higher raw material prices. 


Highlights of the fourth quarter 2015

- Net sales were EUR 290.0 (281.0) million.

- Adjusted EBITDA was EUR 22.1 (28.4) million and the adjusted EBITDA margin
was 7.6% (10.1%). 

- Operating result adjusted for non-recurring items was EUR 8.5 (14.4) million.
There were no non-recurring items in the reporting period. 

- Operating result was EUR 8.5 (10.7) million and net result EUR 7.2 (2.7)
million. 

- Earnings per share (EPS) were EUR 0.14 (0.05).

- Operating cash flow was EUR 44.5 (33.3) million.


Highlights of January-December 2015

- Net sales were EUR 1,130.7 (1,137.3) million.

- Adjusted EBITDA was EUR 93.6 (105.0) million and the adjusted EBITDA margin
was 8.3% (9.2%). 

- Operating result adjusted for non-recurring items was EUR 40.0 (51.0)
million. Non-recurring items amounted to EUR -7.3 (-5.6) million. 

- Operating result was EUR 32.7 (45.4) million and net result EUR 22.8 (7.7)
million. 

- Earnings per share (EPS) were EUR 0.44 (0.14).

- Operating cash flow was EUR 55.5 (57.8) million.

- The Board of Directors proposes to the AGM that EUR 0.30 (0.25) per share be
paid to the shareholders as return of equity from the reserve for invested
non-restricted equity. 


KEY FIGURES (MEUR)                Oct-Dec         Jan-Dec    
                                2015   2014     2015     2014
Net sales                      290.0  281.0  1,130.7  1,137.3
EBITDA (adj.*)                  22.1   28.4     93.6    105.0
EBITDA margin, % (adj.*)         7.6   10.1      8.3      9.2
EBITDA                          22.1   24.7     86.3     99.4
EBITDA margin, %                 7.6    8.8      7.6      8.7
Operating result (adj.*)         8.5   14.4     40.0     51.0
Operating margin, % (adj.*)      2.9    5.1      3.5      4.5
Operating result                 8.5   10.7     32.7     45.4
Operating margin, %              2.9    3.8      2.9      4.0
Net result                       7.2    2.7     22.8      7.7
Earnings per share (EPS), EUR   0.14   0.05     0.44     0.14
Interest-bearing net debt      227.4  225.6    227.4    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 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

“Munksjö’s 2015 showed stable volume development in most of our product
segments during a year with global macroeconomic uncertainty, which especially
impacted our operations in Brazil. Our main markets remain in Europe, but
growth in business area Decor compared to 2014 was mainly driven by our
selective geographical expansion and the business area reached record high
delivery volumes in the fourth quarter. 

During 2015, the price difference between short and long fibre pulp reached
historically low levels. We have been bridging the profitability gap resulting
from the spread by implementing price increases in our two largest business
areas. The implemented price increases had an expected full effect from the
beginning of the fourth quarter, but they are on an annual basis not yet
compensating for the total effect of the increased raw material costs. We will
close the gap for the remaining volumes within the European paper business unit
of Release Liners during the first quarter of 2016, as already negotiated terms
take effect. 

In the fourth quarter, we implemented longer shutdowns in particularly business
area Graphics and Packaging and in the paper business unit in Brazil in order
to reach our targeted inventory levels at the end of the year. The shutdowns
had a negative result effect of approximately EUR 3 million in the quarter. The
annual cash flow from operations remained stable. 

Our performance during 2015 confirmed my view that our strategy enables
sustainable growth and that we also going forward are able to strengthen our
leading positions through our value added solutions. Our long-term market
growth expectation remains intact at between 2-4 per cent annually, as the
demand for several of the end-use applications of our product solutions is
supported by global megatrends. 

During 2016, we continue the efforts and actions to achieve our profitability
target, an EBITDA margin of 12 per cent at the end of the year.“ 


Outlook

The demand outlook in 2016 for Munksjö’s specialty paper products is expected
to remain stable and reflect the seasonal pattern. 

The price increases communicated in the second and third quarter of 2015 have
had a full effect from the beginning of the fourth quarter of 2015, and the
remaining increases in the European paper business unit of business area
Release Liners have a full effect from the first quarter of 2016. 

The EBITDA margin adjusted for non-recurring items in 2016 is expected to
improve compared with 2015 driven by the on-going profitability improvement
plan including increased operational efficiency, profitable growth, product and
service quality leadership and utilising the position as a market and
innovation leader. 

The annual maintenance and vacation shutdowns in the second and third quarter
as well as the seasonal shutdowns at the end of 2016 are expected 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 the third
quarter of 2016. 

The cash flow effect of capital expenditure for fixed assets for 2016 is
expected to be EUR 35-40 million. 


The Munksjö Group

                                Oct-Dec         Jan-Dec    
MEUR                          2015   2014     2015     2014
                                                           
Net sales                    290.0  281.0  1,130.7  1,137.3
EBITDA (adj.*)                22.1   28.4     93.6    105.0
EBITDA margin, % (adj.*)       7.6   10.1      8.3      9.2
EBITDA                        22.1   24.7     86.3     99.4
EBITDA margin,  %              7.6    8.8      7.6      8.7
Operating result (adj.*)       8.5   14.4     40.0     51.0
Operating margin, % (adj.*)    2.9    5.1      3.5      4.5
Operating result               8.5   10.7     32.7     45.4
Operating margin, %            2.9    3.8      2.9      4.0
Net result                     7.2    2.7     22.8      7.7
Capital expenditure            8.9    4.6     39.8     35.1
Employees, FTE               2,749  2,757    2,774    2,765

* Adjusted for non-recurring items


Fourth quarter 2015

Net sales were EUR 290.0 (281.0) million.

EBITDA adjusted for non-recurring items decreased to EUR 22.1 (28.4) million
and the adjusted EBITDA margin was 7.6% (10.1%). Currency hedge losses of EUR
0.2 (1.8) million were recorded in segment Other in the quarter. 

The operating result adjusted for non-recurring items was EUR 8.5 (14.4)
million. There were no non-recurring items in the reporting period. 

The seasonal shutdowns at the end of 2015 were slightly longer on a Group level
compared to the corresponding period last year, as the shutdowns were longer in
the Business Area Graphics & Packaging and the paper business unit in Brazil of
business area Release Liners. The prolonged shutdowns were carried out in
accordance with the plan to reduce inventory levels in the fourth quarter of
2015 and resulted in a decrease in EBITDA of approximately EUR 3 million. 

The operating result was EUR 8.5 (10.7) million and net result EUR 7.2 (2.7)
million. 


January–December 2015

Net sales were EUR 1,130.7 (1,137.3) million.

EBITDA adjusted for non-recurring items decreased to EUR 93.6 (105.0) million
and the adjusted EBITDA margin was 8.3% (9.2%). A higher raw material cost
level resulted in a decrease of EBITDA of EUR 26 million. This negative result
effect was only partially compensated for by a positive effect of EUR 14
million as a result of increased sales prices. Sales prices were impacted by
implemented price increases, a more favourable currency development, a
different product mix and a lower sales price for long-fibre pulp (NBSK). 

Currency hedge losses of EUR 4.9 (3.6) million were recorded in segment Other
in the reporting period. 

The operating result adjusted for non-recurring items was EUR 40.0 (51.0)
million. Non-recurring items amounted to EUR -7.3 (-5.6) million and were
related to the restructuring actions at the production facility located in
Italy, which is part of Business Area Release Liners, other efforts to adjust
the cost structure, other reorganization activities and environmental
provisions. 

The planned annual maintenance and vacation shutdowns in the second and third
quarter were carried out to the same extent as in 2014. The seasonal shutdowns
at the end of 2015 were slightly longer on a Group level compared to the
corresponding period last year, as the shutdowns were longer in the Business
Area Graphics & Packaging and the paper business unit in Brazil of business
area Release Liners. 

The operating result was EUR 32.7 (45.4) million and net result EUR 22.8 (7.7)
million. Earnings per share increased to EUR 0.44 (0.14). 

The currency hedge loss of EUR 4.9 (3.6) million recorded in EBITDA was more
than compensated for by exchange gains on financial assets and liabilities of
EUR 9.5 (losses of 0.9) million recorded in net financial items. 


Webcast and conference call

A combined news conference, conference call and live webcast will be arranged
on the publishing day 11 February 2016 at 10:00 a.m. CET (11:00 a.m. EET, 9:00
a.m. GMT) at restaurant Savoy (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 6937 9543
Swedish callers: +46 (0)8 5033 6539
US callers: +1 646 254 3366
UK callers: +44 (0)20 3427 1904

Conference ID: 8871412

Link to the webcast


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.

Attachments:

Munksjo Oyj_FSB_2015_ENG.pdf