Arctic Paper S.A. Q4, 2022 - preliminary results*: The best year in the Group’s history
- Q4 sales revenue amounted to PLN 1 085,1mn (EUR1 229,4mn).
- EBITDA Q4 was PLN 140,0mn (EUR1 29,6mn) and the EBITDA margin 12,9 percent
- FY 2022 sales revenue amounted to PLN 4 894,3mn (EUR1 1 035,0mn).
- EBITDA FY 2022 was PLN 974,0mn (EUR1 206,0mn) and the EBITDA margin 19,9 percent.
- Decline in demand on the paper market during Q4 as customers reduce their stocks.
- Focus on margins over volumes to maintain profitability.
- Arctic Paper move to the Mid-cap segment on Nasdaq Stockholm.
- Management Board will recommend a dividend of PLN 2.7 per share (0.30).
*The entire audited report FY2022 will be published on March 28
1Arctic Paper S.A. reports in PLN. In the English press release, the amounts above were converted to EUR at the average rates for the quarter respectively.
“The strong results have significantly improved Arctic Paper’s financial position.”
Michal Jarczyński, CEO
The year 2022 ended with another strong period as the best year in the Group’s history. For Q4, consolidated sales increased to PLN 1.085.1 million (953.5 million) while EBITDA doubled to PLN 140.0 million (69.2), corresponding to an EBITDA-margin of 12.9 percent (7.3).
For the full year the Group achieved consolidated sales of PLN 4,894.3 million (3,412.6 million), EBITDA of PLN 974.0 million (327.8 million) and an EBITDA-margin of 19.9 percent (9.6). Both paper and pulp contributed to growth in earnings. The strong results have significantly improved Arctic Paper’s financial position: Net debt reached a record low of PLN -276.2 at the end of the year. We have used part of the positive operative cash flow to reduce debt to banks and for pension liabilities, thus making the Group more resilient in the event of a recession. Thanks to the excellent results, the management board will recommend a dividend of PLN 2.7 (0.30). The recommendation is reasonable given our strong balance sheet, while we are still well funded for the upcoming investments in energy and packaging.
Paper segment sales increased to PLN 770.0 million (689.2 million) with EBITDA of PLN 122.3 million (31.2 million). After a historically strong period, sales volumes decreased during the fourth quarter as customers reduced their stock before the turn of the year. The decline affected all qualities and subsegments, even though book and premium design papers are more stable against changes in demand. Arctic Paper focuses on profitability and has therefore chosen to prioritize margins over volumes. After a price increase early at the beginning of the period, paper sales revenue per ton reached PLN 6.6k, which is 60 percent above the average during the comparable period last year. Production capacity utilization for the period was 85 percent (99).
For Rottneros – the pulp segment – revenue for the fourth quarter increased by 22 percent to SEK 730 million (598 million) with an EBITDA result of SEK 31 million (88 million). The production volume for the period was 87.2 thousand tons (91.4) after the maintenance shutdown in Vallvik in December and a turbine failure. Rottneros saw declining demand and thus a slightly lower pulp price at the end of the period.
The development of our packaging segment has been deliberately held back as we managed production in terms of value per ton and graphical paper has shown better margins for several quarters. For the full year of 2022, 18.6 thousand tons of packaging paper were sold.
The energy projects are running according to plan. Several solar energy projects in Poland and Sweden are prepared for execution during 2023. Step by step, we are getting closer to self-sufficiency.
The past year was a record year for Arctic Paper and the Group entered 2023 strengthened. Although there is uncertainty about the immediate future, we can continue our transformation. Arctic Paper has the necessary financial resources to invest in our strategic diversification into packaging and energy, while maintaining our positions in paper and pulp.
Michal Jarczyński, CEO of Arctic Paper S.A.
Financial calendar for 2023
Annual report 2022: Year end March 28th, Q1 2023: May 9th, Q2 2023: August 10th, Q3 2023: November 7th
This disclosure contains information that Arctic Paper is obliged to make public pursuant to the EU Market Abuse Regulation (EU nr 596/2014) and the Swedish Securities Markets Act (2007:528). The information was submitted for publication, through the agency of the contact person, on 15-02-2023 17:40 CET.
