The Q1- report showed some improvement across the board. Nothing very drastic, but certainly better than in the last few quarters when gross margins deteriorated. Q1 gross margins of 17. 5 percent is a little higher Y/Y and clearly better Q/Q.
It now looks like the margin squeeze from higher raw material costs will abate. After last years’ price increases for pulp and paper we have recently seen signs of a weaker paper market in some segments. Also Bong has implemented price increases that should improve margins gradually through 2019.
