Pulp and paper manufacturer Billerud has reported a 13% year-on-year decline in net sales to SEK 9.95 billion (€860 billion) in the second quarter of its financial year.
Billerud attributed its performance to lower sales volumes (831,000 tonnes) due to low demand and inventory adjustments by customers, which resulted in further production curtailments.
In June, the company said it expects second-quarter results below market expectations due to lower sales volume and revaluation of finished goods inventory.
Christoph Michalski, president and CEO of Billerud said, "The second quarter was challenging with all-time low sales volumes and with currency-neutral net sales declining by 18% compared to the same period last year.
"The largest sales decline was in North America due to the continued inventory destocking resulting in production curtailments. This, in combination with historically high fibre costs in Europe, led to a weak result."
Quarterly Highlights
Net loss for the quarter amounted to SEK 481 million (€41.7 million) while operating loss was SEK 496 million (€43 million).
The company's adjusted EBITDA amounted to SEK 188 million (€16.3 million), while the adjusted EBITDA margin was 2%.
It was impacted by low volumes, higher input costs, and revaluation of finished goods inventory, partly offset by increased sales prices, currency effects, and delivery of its efficiency enhancement programme.
Bilelrud expects weak market conditions to continue in the third quarter and will continue curtailments on production.
Negative mix impact and some price reductions are expected, and input costs are likely to decline except for wood raw material in Europe, the company noted.
Recently, the company agreed to divest Managed Packaging, which offers packaging solutions to global brand owners, to Mimir Group.
