Tissue paper maker Sofidel has confirmed steady growth in its financial year 2021, saying that its performance returned to pre-pandemic levels.
The company added that its margins and financial results were partly affected due to rising raw material prices and their impact on sale prices.
The first half of the year was particularly affected by the price of cellulose, while in the second half the sharp increase in energy prices (more in Europe, less in the United States) weighed on the cost structure, the company added.
'Difficult Economic Environment'
Sofidel Group chief executive officer, Luigi Lazzareschi, said, “In a very difficult economic environment, in which the impressive rise in commodity prices has affected economic performance, we can define the results related to business development as good.
“Sofidel sees its sales strengthened, as well as, thanks to the continuation of its sustainability strategies, its competitive conditions.”
Consolidated turnover amounted to more than €2 billion during the financial year, while EBITDA margin stood at 10.42%.
The company witnessed the consolidation of sales in Europe in the second half of the year and significant strengthening in the United States.
Sofidel has pledged to purchase and produce electricity from renewable resources as part of its goal to transition into a low-carbon economy.
In Italy, it has entered into an agreement to source wind energy from RWE Renewables.
At its Kisa production site in Sweden, the company has collaborated with Meva Energy for constructing a renewable gas production plant.
It has also made investments in its Baglan plant, in Wales, for an energy efficiency intervention that will enable significant reductions in emissions.