Rottneros: A shaky start to the year - ABG

Q1: Clean EBIT of SEK 5m, production issues
Pulp prices move higher, demand stronger
Fair value range: SEK 9-16/sh


Q1: Figures below due to production issues

Q1 clean EBIT was SEK 5m, below ABGSCe of SEK 37m. The miss was mainly driven by higher wood costs and higher costs related to production problems at Vallvik mill. Rottneros booked losses of ~SEK -30m related to the production problems, i.e clean EBIT was SEK 35m when adjusting for these (more in line). Regarding Q2e, we believe higher pulp prices will add SEK 20m-30m q-o-q. Rottneros should also see SEK +10m-15m from higher volumes, and a reversal of the costs from Vallvik should add SEK 30m. Our q-o-q bridge points to a clean EBIT of SEK 65m-80m.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/rottneros/Equity-research/2024/5/rottneros---a-shaky-start-to-the-year/