- Key financial highlights from the quarter: Sales increased by +1% QoQ (+9% YoY), with group volumes up +11% YoY (-4% QoQ) and realised an average price increase of 5% QoQ (-1% YoY). Meanwhile, EBITDA improved by a staggering +22% QoQ (+30% YoY) with an EBITDA margin of 22.9%. Gearing remains well controlled with net debt/EBITDA now 1.5x.
- Third consecutive quarter with improving results for Kraft Paper (unbleached sack paper, MG paper and various kinds of high-quality speciality paper for industrial use): Sales increased by +4% QoQ (+1% YoY), with volumes up +7% YoY (-3% QoQ) and realised an average price increase of +8% QoQ (-5% YoY). Meanwhile, EBITDA improved by +35% QoQ (-17% YoY) with an EBITDA margin of 24.7%.
- Interior design products made of Nordic Paper kraft paper: With over a century of expertise from yarn and textile industry, AB SvensktKonstsilkehas recently developed a thread and fabric made from kraft paper. Under the Fabric Forest brand, interior design products for public and residential use are being produced and marketed. The speciality kraft paper is produced at Nordic Paper Åmotfors.
- Bäckhammar investment SEK 850m (2023-25) is proceeding according to plan: This includes a new wood room providing for strategic flexibility in raw material sourcing and efficiency gains in the production. Additionally, this will include a new electrostatic filter system for substantially improved sustainability performance. These improvements are expected to add SEK 100mn to EBITDA annually with full effect from 2026.
- Third quarter outlook: Demand for Nordic Paper products will remain healthy and average product prices will continue to increase, albeit at a slower cadence than in the second quarter. Product price increases are expected to compensate for further price increases for raw material, mainly pulp wood and chips.
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