by Sean Ungerer | Aug 26, 2020 | Forestry and Paper
Intention to exit publication paper: Having previously closed over 1mtpa, remaining assets are cash flow negative. Negotiations have been initiated for the closure of all three paper machines at the Ortviken mill within next six months. This will remove 775ktpa of...
by Sean Ungerer | Aug 18, 2020 | Forestry and Paper
Q2 20A saw adjusted EBITDA increase by 35% y/y (38% q/q): This was driven by the Pulp segment, where sales volumes increased by 25% y/y (-3% q/q) supporting a robust EBITDA margin of 52%, despite bottom of cycle pulp pricing. Unfortunately, bottom line looks messy due...
by Sean Ungerer | Aug 6, 2020 | Forestry and Paper
Dividends resume: As with Smurfit Kappa, MNP resumed dividends in line with its stated dividend policy (2-3x underlying EPS). Last dates to trade cum-dividend are 18 August (JSE) and 19 August (LSE). FY 19A and H1 20A DPS yield 3%.Strong Corrugated performance (36% of...
by Sean Ungerer | Aug 5, 2020 | Forestry and Paper
Q2 20A revenue -35% y/y (-26% q/q) and EBITDA -70% y/y (-61% q/q): Margins collapse to 7.9% as textile fibre revenue declines by 58% y/y(-50% q/q), which shadowed the increase in non-woven fibres revenue of +8% y/y (+12% q/q).Central European wood market is still...
by Sean Ungerer | Aug 4, 2020 | Forestry and Paper
Turnover -33% y/y and EBITDA -49% y/y (-42% q/q): Group ROCE at 7.2% driven by EBITDA margin pressure (-580bps y/y and -400bps q/q) down to 17.8%. This was primarily from their UWF business, where revenue declined by 45% y/y (-41% q/q). UWF volumes were down -37% y/y...
by Sean Ungerer | Jul 30, 2020 | Forestry and Paper
Q3 20A EPS of -USD 0.10/share in line with our estimates; however, EBITDA of USD 27mn was lower than expected (CRe: USD 40mn): Both Europe and North America printed negative EBITDA, weighed down by Graphic Paper despite fixed cost savings in excess of 10%. SA and...
