by Sean Ungerer | Jul 29, 2020 | Forestry and Paper
Liquidity over profitability means Q3 20e EBITDA is likely to disappoint: We estimate EPS of at least -USD 0.10/share with EBITDA down at least 66% y/y to USD 40m. We expect a slight uptick in net debt to USD 1,899mn (CapEx and FX), with net debt/EBITDA of 3.8x...
by Sean Ungerer | Jul 21, 2020 | Forestry and Paper
Q2 20A hit the hardest from COVID-19 in its Paper business: Sales declined by 18.9% y/y (-11.9% excl. Paper), while group EBIT margin was stable at 13% excluding the Paper segment. Selling prices trended lower for most grades and volumes were under pressure with the...
by Sean Ungerer | Jul 10, 2020 | Forestry and Paper
COVID update: India is getting worse (Mumbai cases spiking as well as new areas), which is being accentuated by monsoon season. Despite this, they see another lock down unlikely. COVID could mean less reliance on China: Global players may look to reduce their reliance...
by Sean Ungerer | Jul 9, 2020 | Forestry and Paper
EPS impact of closures: USD 0.05/share boost in FY 21e. Cash impact of closures: USD 28m cash impact of closures (USD 0.05/share or 1.5% of net debt). Non-cash charges expected to total USD 17m. Stockstadt mill (Europe): In line with expectations, Sappi confirmed...
by Sean Ungerer | Jul 3, 2020 | Forestry and Paper
FY 20A results (revenue: -2%; EBIT: +5%, EPS -1%) saw strong margin expansion despite top line pressure: COVID-19 shaved GBP 15m (2.3%) off EBIT, impacting March and April. North America lagged the group, with margin contraction of 842bps y/y as domestic performance...
by Sean Ungerer | Jun 23, 2020 | Forestry and Paper
Record VSF sales volumes in FY 20A (554kt/+2.4% y/y): Jan-Feb saw record production rates of 1,700/t (usually 1,400-1,500/t) driven by ”booming” demand, with a continued shift to VSF. Q4 volumes were flat as national lockdown (10 days in March) saw March volumes down...
