Agricoltura
Kotkamills Group Oyj: KOTKAMILLS INTERIM REPORT FOR JANUARY-JUNE 2018
Kotkamills Group Oyj
STOCK EXCHANGE RELEASE
31 August 2018, at 7 pm (CET + 1)
This is a summary of the January - June 2018 interim report. The complete report is attached to this release and is also available at www.kotkamills.com/fi/kotkamillsgroup/keyfinancials.
The revenue of EUR 97,9 million (EUR 75,9 million) from continuing operations improved by EUR 22,0 million from the same period a year ago mainly due to increased sales in the Consumer Boards segment.
The Group's EBITDA of EUR 8,0 million (EUR 2,4 million) increased clearly from the same period a year ago following the improved financial performance of Consumer Boards business.
Since completing the board machine investment in Q3/2016, Consumer Boards segment delivered the first positive quarter with an EBITDA of EUR 1,7 million (EUR -4,9 million).
Industrial Products segment continued its good financial performance with an EBITDA of EUR 5,8 million (EUR 7,3 million).
The operating profit from continuing operations was EUR 4,1 million (EUR -1,7).
The revenue of EUR 185,5 million (EUR 135,9 million) from continuing operations improved by EUR 49,7 million from the same period a year ago mainly due to increased Consumer Boards sales.
The Group EBITDA from continuing operations was EUR 12,3 million (EUR 2,4 million) following the improved impact of Consumer Boards business.
The operating profit from continuing operations was EUR 4,4 million (EUR -5,8 million).
Demand continued on good level during the second quarter. In Industrial Products segment, the delivery volumes of both saturating base kraft and wood products were on the same level as in the
previous quarter whereas delivery volumes in the Consumer Boards segment increased clearly compared to the previous quarter.
The Group monitors capital by using an adjusted equity ratio based on the financial covenant, which is total equity added with shareholder loan and the junior term loan and divided by total assets (which shall be at least 30% in the end of each reporting period). The Group's policy is to keep the adjusted equity ratio above 30%. There have been no breaches of the financial covenant of adjusted equity ratio in the current period.
In July the Company informed that its subsidiaries Kotkamills Oy and Kotkamills Absorbex Oy have signed a long term service contract with Adven Oy, a supplier of tailored corporate energy and water solutions, concerning improvement of the evaporation process in the Group's Kotka pulp mill.
The service includes adding new evaporators and replacing obsolete parts of the existing evaporation plant of the pulp mill.
The service will improve Kotkamills' energy efficiency significantly by reducing the energy consumption in the evaporation of black liquor in the pulp production process, decrease environmental emissions and enable future production capacity increases of the pulp mill.
The service agreement will be implemented in two phases, the first phase is estimated to be operational in September 2019 and the new evaporation plant fully operational in September 2020.
The service contract is estimated to have a positive impact on the profitability of Kotkamills Group.
Revenue of the third quarter in 2018 is estimated to be lower than in the second quarter due to the annual maintenance shutdown in August. Profit from continuing operations for the third quarter of
2018 is estimated to be below the previous quarter's level due to the one-time effect of the maintenance shutdown.
Demand of all business segments is expected to stay on good level, but changes in the global economic situation and geopolitical risks may have weakening impact on demand.
Currency exchange rate changes and possible increases in raw material prices could adversely impact the Group's profit development.
Kotkamills Group Oyj
Board of Directors
For additional information, please contact:
CFO Petri Hirvonen, tel.+358 40 571 0834, petri.hirvonen@kotkamills.com
DISTRIBUTION:
Nasdaq Helsinki Ltd
Key media
www.kotkamills.com
Kotkamills is a responsible partner that delivers renewable products and performance to its customers' processes via product innovations created from wood, a renewable raw material. One of the key brands of the company include Absorbex® an innovative laminating paper product for the laminate, plywood and construction industries. Moreover, Kotkamills offers ecological, technically sound and visually attractive wood products for demanding joinery and construction. In summer 2016, Kotkamills started up a new board machine producing AEGLE(TM) Folding Boxboard and ISLA(TM) Food Service Boards, including the capability to add barriers on-machine. All Consumer Board material solutions are fully recyclable and repulpable.
Kotkamills has two production sites in Finland, located in Kotka and Imatra. The majority shareholder of Kotkamills is MB Funds, a Finnish private equity firm.
www.kotkamills.com
2321 Rosecrans Avenue. Suite 2200
90245 El Segundo Stati Uniti