Bong: Strong packaging growth but margin squeeze in envelopes
The third quarter was very much in line with our estimates in terms of total sales and earnings. Sales increased by 9 percent Y/Y, mainly thanks to currency tail winds. EBIT of SEK 12 million is a significant improvement Y/Y. Compared to earlier this year, EBIT-level is virtually unchanged.
Bongs Light Packaging recorded surprisingly strong sales growth in the quarter: 22 percent and 14 percent adjusted for currency effects. In the envelope business paper prices are still on the rise putting pressure on gross margins.