AI assistant
BillerudKorsnäs Interim / Quarterly Report 2021
2893_10-q_2021-04-27_1033f24b-f363-4699-a9ca-8146211e8b4c.pdf
Interim / Quarterly Report
Open in viewerOpens in your device viewer
Interim report January–March 2021
Sales growth driving EBITDA performance
KEY HIGHLIGHTS
- Strong net sales
- Ramp-up at Gruvön (KM7) reached EBITDA break-even
- Excellent production quarter with increased operational efficiencies
QUARTERLY DATA
- Net sales grew by 2% to SEK 6 520 million (6 364). Excluding currency effects net sales grew by 5%
- Adjusted EBITDA* increased by 27% to SEK 1 003 million (791), mainly due to the ramp-up at Gruvön
- Operating profit amounted to SEK 528 million (280)
- Net profit was SEK 377 million (164)
- Earnings per share amounted to SEK 1.82 (0.79)
OUTLOOK
- Stable and improved market conditions
- Positive price adjustments in several segments • Selective cost increases for raw materials and
Q1
2021
transport • Continued cost and efficiency measures
KEY FIGURES*
| Q1 | Q1 | Q4 | |||
|---|---|---|---|---|---|
| SEKm | 2021 | 2020 | Change | 2020 | Change |
| Net sales | 6 520 | 6 364 | 2% | 5 803 | 12% |
| Adjusted EBITDA | 1 003 | 791 | 27% | 568 | 77% |
| Operating profit | 528 | 280 | 89% | 163 | 224% |
| Adjusted operating profit | 528 | 305 | 73% | 90 | 487% |
| Net profit from continuing operations | 377 | 164 | 130% | 242 | 56% |
| Adjusted EBITDA, % | 15% | 12% | 10% | ||
| Adjusted operating profit margin, % | 8% | 5% | 2% | ||
| Adjusted ROCE, % | 4% | 3% | 3% | ||
| Operating cash flow after operative investments | 165 | -438 | 943 | ||
| Interest-bearing net debt/adjusted EBITDA, multiple | 1.8 | 2.3 | 2.0 |
* For key figures and a reconciliation of alternative performance measures including adjusted EBITDA, adjusted operating profit, adjusted EBITDA margin, adjusted operating profit margin, adjusted ROCE and interest-bearing net debt/adjusted EBITDA, see pages 16-18 and page 6 for operating cash flow after operative investments.
For further information, please contact:
Ivar Vatne, CFO, +46 8 553 335 07
Lena Schattauer, Head of Investor Relations, +46 8 553 335 10
This information constituted inside information prior to publication. This is information that BillerudKorsnäs AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 07.00 CET on 27 April 2021.
SEK 6 520 million Net sales
SEK 1 003 million Adjusted EBITDA
15% Adjusted EBITDA margin
Comments by the CEO
The first quarter has been good. Not only did we have stable and high availability in our production, but our net sales also grew to an all-time high level and earnings improved substantially. The stronger performance is based on deliving within our three focus areas; ramping up the new board machine at Gruvön (KM7), ensuring a safe and stable production, and implementing cost and efficiency measures. The ramp-up at Gruvön reached EBITDA break-even in the first quarter, which is an important milestone for the entire company.
Also market conditions improved during the first three months of this year. Sales momentum was positive in both product areas and our total order pipeline at the end of March was almost 50% higher than the same time last year. Looking forward, we expect stable and improved market conditions and to implement higher prices in several of our segments. We see increasing demand for liquid packaging board for the full year. On the supply side we expect selective cost increases for raw material in the second half of the year and higher costs for overseas transportations as a consequence of the constrained container shipping situation.
Although vaccination programmes are being rolled out widely and at a higher speed, the coronavirus pandemic is not over yet. In all of our operations we need to stay prudent and continue to take preventive actions. The maintenance shutdown at Gruvön in April has been carried out with meticulous precautionary measures to avoid the spread of infection and disease. I am delighted that our colleagues at Gruvön have managed to accomplish this comprehensive shutdown successfully and without compromising the safety of employees and contractors.
The new board machine at Gruvön is gradually increasing its output of high-quality board material and the ramp-up has now entered a stage of product portfolio optimization within the Board product area. The certification of liquid packaging board from the new machine is proceeding in collaboration with our customers, although at a slower rate than we would wish for due to the coronavirus pandemic.
In January, the Board of Directors decided to invest in a new recovery boiler at the Frövi mill. After that, ground work has been initiated and Andritz has been awarded the contract for the recovery boiler. The new boiler will improve environmental performance and provide opportunities for enhanced efficiency and is planned to be in operation by the end of 2023.
Our priorities for the years ahead have not changed. Health and safety is the top priority. We must do everything we can to reduce the accident rate. Furthermore, we will strive to increase customer satisfaction through our constant quality management work, progress with the commercial ramp-up at Gruvön and by ensuring a competitive wood supply. Cost and efficiency measures will continue and the estimated positive effect of our cost and efficiency programme is SEK 250 million in 2021 and SEK 65 million in 2022. We have also initiated a digitalization project to realize opportunities through common ways of working and automated processes.
In parallel with disciplined work with these priorities, we are developing opportunities for profitable growth for the longer term. Sustainability will remain at the core of our strategy and we are committed to playing our part to reduce our carbon footprint in line with the Paris agreement.
Christoph Michalski President and CEO
The EBITDA margin improved mainly as a result of the positive trend of the ramp-up at Gruvön
Adjusted EBITDA margin
Target level >17%
20
Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021
The quarter in review
SALES AND RESULTS
Net sales for the first quarter grew by 2% amounted to SEK 6 520 million (6 364). Excluding currency effects sales rose by 5%, driven by higher sales volumes and an improved sales mix.
Adjusted EBITDA increased to SEK 1 003 million (791), mainly due to higher sales as a result of the positive trend of the ramp-up at Gruvön, as well as lower costs for raw materials.
No items affecting comparability impacted the results for the first quarter (25).
MARKET DEVELOPMENT AND OUTLOOK
During the first quarter of 2021, all segments except liquid packaging board and kraft paper improved. The markets for liquid packaging board and kraft paper were stable.
For 2021, all segments are expected to improve except liquid packaging board that is expected to remain stable. Positive price movements are expected in several segments.
EVENTS IN THE QUARTER
On 11 January it was announced that Jan Åström will not be available for re-election as Chairman of the Board, but as a Board member and that the Nomination Committee will propose that he is elected to this role. The Nomination Committee also announced its decision to propose that Jan Svensson be elected as Chairman of the Board at the 2021 Annual General Meeting. Jan Svensson is a member of the Board of BillerudKorsnäs since 2020 and was the CEO of Latour 2003-2019.
On 28 January the Board of Directors made a decision to invest in a new recovery boiler at Frövi, planned to be in operation at the end of 2023. A new recovery boiler will improve environmental performance, increase energy production and create possibilities for increased efficiency and integration of the mill. The investment is estimated to SEK 2.6 billion. The value of the current recovery boiler will be depreciated until it is closed, which will result in additional depreciations of around SEK 25 million per year for 2021-2023. See more information on page 7.
On 1 February the functions Technology, Strategy, Communication & Brand and Legal & Compliance were included in the Executive Management Team. At the same time, Erik Olsson assumed the position as Executive Vice President, Strategy and Ulf Eliasson assumed the position Executive Vice President, Technology.
On 26 February it was announced that Helene Biström, Executive Vice President Commercial, has decided to leave BillerudKorsnäs. On 15 April it was announced that Matthew Hirst has been appointed new Executive Vice President Commercial. He will take office on 16 August and be a member of the Executive Management Team.
At the end of March it was decided to postpone the annual maintenance shutdown at Skärblacka to the fourth quarter, due to the coronavirus pandemic.
EVENTS AFTER THE QUARTER
In the second and third week of April, the annual maintenance shutdown at Gruvön was carried out successfully under extensive precautionary measures due to the coronavirus pandemic, such as testing performed by healthcare staff and quarantine periods for foreign contractors. Additional costs for the maintenance shutdown at Gruvön will be around MSEK 20 in the second quarter.
An incident on 21 April at Gävle mill damaged equipment connected to the digester in the bleached pulp mill. After making an initial investigation, necessary repair work is underway but production will be affected for around two to three weeks. While volume loss is estimated to 18 000 tonnes, the net negative financial effect of the incident is not deemed material for the full year result and is currently estimated between SEK 40-75 million.
Product area Board
0% 1% 1% 2% 2% 3% 3% 4% 4% 5% ROCE
3% 3% 3% 3%
1EBITDA
KEY FIGURES
| Q1 | Q1 | Q4 | Full year | |
|---|---|---|---|---|
| SEKm | 2021 | 2020 | 2020 | 2020 |
| Net sales | 3 785 | 3 600 | 3 370 | 13 600 |
| of which liquid packaging board | 2 073 | 2 060 | 1 908 | 7 745 |
| of which cartonboard | 529 | 399 | 436 | 1 659 |
| of which containerboard | 1 077 | 1 017 | 948 | 3 886 |
| Net operating expenses, other | -3 080 | -3 063 | -2 889 | -11 745 |
| EBITDA | 705 | 537 | 481 | 1 855 |
| EBITDA, % | 19% | 15% | 14% | 14% |
| Operating profit/loss | 380 | 201 | 149 | 516 |
| Operating margin, % | 10% | 6% | 4% | 4% |
| ROCE, % | 4% | 3% | 3% | 3% |
| Sales volumes, ktonnes | 521 | 491 | 460 | 1 842 |
SALES AND RESULTS
4%
Net sales for the first quarter increased by 5% to SEK 3 785 million (3 600). Excluding currency effects sales grew by 9%, mainly driven by higher sales volumes of cartonboard and containerboard compared with the same period last year.
EBITDA increased to SEK 705 million (537) as a result of increased sales volumes, high availability in production and lower fibre costs, which more than offset negative currency effects.
See page 8 about the Next generation programme and the new board machine at Gruvön (KM7).
MARKET DEVELOPMENT
In the first quarter of 2021, market conditions for liquid packaging board were stable and improved for containerboard and cartonboard. There was a price increase in containerboard in the first quarter.
About Product area Board
Q1 -20 Q2 -20 Q3 -20 Q4 -20 Q1 -21
The Board product area includes liquid packaging board, cartonboard and containerboard, which are mainly used to produce packaging for liquid food, consumer products and fragile industrial products and food. The mills at Gävle, Gruvön and Frövi/ Rockhammar belong to this product area.
Product area Paper
Q1 2021 EBITDA 29% 306 323 241 165 263
Share of Group's net sales
20% 25%
ROCE
KEY FIGURES
| 2021 | 2020 | 2020 | 2020 |
|---|---|---|---|
| 1 777 | 7 576 | ||
| 628 | 632 | 575 | 2 442 |
| 836 | 925 | 814 | 3 435 |
| 426 | 460 | 386 | 1 669 |
| -1 640 | -1 718 | -1 612 | -6 541 |
| 263 | 306 | 165 | 1 035 |
| 14% | 15% | 9% | 14% |
| 145 | 185 | 51 | 558 |
| 8% | 9% | 3% | 7% |
| 10% | 11% | 10% | 10% |
| 255 | 250 | 227 | 946 |
| 1 903 2 024 |
SALES AND RESULTS
Net sales for the first quarter declined by 6% to SEK 1 903 million (2 024). Excluding currency effect the sales grew by 1%. Sales volumes of both sack paper and kraft paper increased while the pulp volumes declined.
EBITDA decreased to SEK 263 million (306), negatively impacted by unfavourable currency effects, market prices and changed sales mix, and positively impacted by lower fibre costs and operational efficiencies.
MARKET DEVELOPMENT
In the first quarter of 2021, market conditions for sack paper improved while market conditions for kraft paper were stable. Market prices were unchanged.
About Product area Paper
The Paper product area includes premium quality kraft and sack paper, which is mainly used in packaging for medical applications, dry food and the construction industry. The mills at Skärblacka, Karlsborg, Pietarsaari and Beetham belong to this product area.
Solutions and Other
SALES AND RESULTS
Net sales for the first quarter amounted to SEK 832 million (740). The increase in sales was mainly due to positive currency hedging effects. Net sales in Managed Packaging were on the same level as previous year, as the demand for packaging services from brand owners continued to be relatively weak as a consequence of the coronavirus pandemic.
EBITDA amounted to SEK 35 million (-77). The profit improvement was a result of positive currency hedging effects.
KEY FIGURES (INCLUDING CURRENCY HEDGING ETC)
| Q1 | Q1 | Q4 | Full year | |
|---|---|---|---|---|
| SEKm | 2021 | 2020 | 2020 | 2020 |
| Net sales | 832 | 740 | 656 | 2 708 |
| of which Managed Packaging | 144 | 147 | 168 | 635 |
| Net operating expenses, other | -797 | -817 | -661 | -2 886 |
| EBITDA | 35 | -77 | -5 | -178 |
| Operating profit/loss | 3 | -106 | -37 | -300 |
Cash flow and financial position
SUMMARISED CASH FLOW STATEMENT
| Quarter | ||
|---|---|---|
| SEKm | Q1 -21 | Q1 -20 |
| Operating surplus, etc. | 929 | 725 |
| Change in working capital, etc. | -481 | -790 |
| Net financial items, taxes, etc. | -83 | -91 |
| Cash flow from operating activities | 365 | -156 |
| Operative investments | -200 | -282 |
| Operating cash flow after operative investments | 165 | -438 |
Operating cash flow after operative investments strengthened to SEK 165 million (-438) for the first quarter 2021. The improved cash flow was mainly due to improved operating surplus and changes in working capital compared to the first quarter prior year.
Operating cash flow after operative investments include all gross investments in property, plant and equipment, and intangible assets.
FINANCING
At 31 March 2021, interest-bearing debt amounted to SEK 6 792 million (7 839). Interest-bearing debt decreased with SEK 533 million during the first quarter due to repayment of bond loan within MTN program of SEK 500 million and amortisation of term loan.
Debt portfolio and maturity profile at 31 March 2021
| Maturity, years | Total | ||||
|---|---|---|---|---|---|
| Loan | Limit, SEKm | 0-1 | 1-2 | 2- | utilised |
| Syndicated credit facilities | 5 500 | - | |||
| Term loans | 91 | 91 | 1 210 | 1 392 | |
| Bond loans within MTN program | 7 000 | 2 000 | 1 800 | 3 800 | |
| Other bond loans | 1 600 | 1 600 | |||
| Commercial paper | 4 000 | - | |||
| Group total | 2 091 | 1 891 | 2 810 | 6 792 |
Net debt/Adjusted EBITDA target level <2.5
0.0 0.5 1.0 1.5 2.0 2.5 3.0
0
8
16
Interest-bearing net debt at 31 March 2021 amounted to SEK 5 234 million (5 951).
The Group's net interest-bearing debt in relation to EBITDA at the end of the period was 1.8 (2.3). The ratio of net interest-bearing debt to adjusted EBITDA was also 1.8 (2.3).
INVESTMENTS AND CAPITAL EMPLOYED
Operative investments in property, plant, equipment and intangible assets amounted to SEK 200 million (282) for the first quarter 2021.
An investment in a new recovery boiler at the Frövi mill has in 2021 been initiated. The investment is estimated to total SEK 2.6 billion and is planned to be financed by cash flow from operating activities. The negative cash flow effect in 2021 of the Frövi investment is estimated to SEK 700 million.
Capital employed at 31 March 2021 amounted to SEK 24 854 million (25 102). Return on capital employed (ROCE) for the last 12-month period, amounted to 4% (3), and was the same if adjusted operating profit was used in the calculation.
Return on equity was 5% (37) over the last 12 months period. Return on equity during the comparison period was affected by the sale of BSÖ Holding AB Group in August 2019.
The coronavirus pandemic
BillerudKorsnäs has since the outbreak of the coronavirus pandemic run its operations without any major disruptions. Precautionary measures have been taken to safeguard the health of individuals, secure deliveries, support customers and develop contingency plans with regard to critical resources.
The financial effects of the coronavirus pandemic in the first quarter of 2021 were limited and mainly related to weaker market conditions for some product segments and services depending on their end markets. Some outbound logistical challenges have been faced, but they have been overcome in a satisfactory way. There has been no increases of credit losses.
Additional costs for the annual maintenance shutdown at Gruvön, mainly related to the coronavirus pandemic, will be around MSEK 20 in the second quarter of 2021. The annual maintenance shutdown at Skärblacka has been postponed from the second quarter to the fourth quarter of 2021 due to the coronavirus pandemic.
Read more about risks and uncertainties on page 10.
Adjusted return on capital employed Target level >13%
Cost and efficiency programme
BillerudKorsnäs introduced a cost and efficiency programme in 2019 with measures including employee reductions, purchasing savings and efficiency improvements throughout the business and in 2020 the structural savings under the programme amounted to SEK 335 million.
The estimated delivery under the cost and efficiency programme is positive effects of SEK 250 million in 2021 and SEK 65 million in 2022.
In the first quarter 2021, the structural savings from the programme amounted to SEK 70 million and were mainly related to operational efficiencies and employee reductions.
Next generation programme (KM7)
The new board machine at Gruvön (KM7), with a production capacity of 550 000 tonnes per year, was started in the second quarter of 2019. As the machine was brought online three older machines with a total production capacity of 215 000 tonnes per year were closed. In the first quarter of 2021, KM7 reached break-even EBITDA compared with the base year 2018. After reaching break-even, the new board machine has entered a stage of optimisation of the product portfolio within Product area Board and the separate reporting on the Next generation programme (KM7) will discontinue.
Currency hedging
Currency hedging had a net sales impact of SEK 42 million (-113) in the first quarter of 2021 compared with no currency hedging.
Outstanding forward exchange contracts at 31 March 2021 had a market value of SEK 106 million, SEK 39 million of which is the portion of the contracts matched by trade receivables that affected earnings in the first quarter. Accordingly, other contracts had a market value of SEK 67 million.
| Currency | Q2-21 | Q3-21 | Q4-21 | Q1-22 | Q2-22 | Total 15 months |
|---|---|---|---|---|---|---|
| EUR Share of net flow | 84% | 80% | 79% | 75% | - | 64% |
| Rate | 10.80 | 10.70 | 10.39 | 10.22 | - | 10.53 |
| USD Share of net flow | 71% | 63% | 63% | 62% | - | 52% |
| Rate | 9.71 | 9.22 | 8.59 | 8.49 | - | 9.03 |
| GBP Share of net flow | 37% | - | - | - | - | 7% |
| Rate | 11.75 | - | - | - | - | 11.75 |
| Market value of currency contracts* |
71 | 40 | 4 | -9 | - | 106 |
Hedged portion of forecast currency flows for EUR, USD and GBP and exchange rates against SEK (31 March 2021)
*At 31 March 2021.
Taxes
The tax cost for the first quarter 2021 amounted to SEK 109 million (38), equal to approximately 22% (19) of profit before tax.
Parent company
The parent company BillerudKorsnäs AB includes head office and support functions.
Operating profit/loss for the first quarter 2020 was SEK 107 million (4). The operating result includes the effects of hedging contracts and revaluations of trade receivables.
The parent company hedges both its own and the Group's net currency flows. The parent company's earnings include the results of these hedging measures. These earnings were SEK 42 million (-113) for the first quarter 2021.
The average number of employees at 31 March 2021 was 142 (133).
Cash and bank balances, and short-term investments amounted to SEK 2 427 million (2 766).
Sustainability
Sustainability KPIs, rolling 12 months (R12M)
| Q1 -21 | Q4 -20 | 2021 target | |
|---|---|---|---|
| Energy consumption ¹ | 5.29 | 5.29 | 5.2 |
| Emissions of fossil CO2 ² | 29.4 | 30.0 | 29 |
| Gender equality ³ | 24.1 | 23.8 | 24 |
¹ Defined as preliminary energy consumption (MWh/tonne product), R12M.
² Defined as preliminary emissions of fossil CO2 in the manufacturing process (kg/tonne product), R12M.
³ Defined as female employees (%).
ENVIRONMENT
BillerudKorsnäs is working towards a vision of fossil-free production and minimising emissions throughout the value chain. This work is mainly aimed at phasing out fossil fuels from production, along with investments in energy efficiency and reducing indirect emissions. Fossil CO2-emissions in production has had a positive trend and amounted preliminary to 29.4 kg/tonne in the last twelve months. Preliminary energy consumption was 5.29 MWh/tonne in the same period.
GENDER EQUALITY
BillerudKorsnäs' aims to increase the share of women, both overall in the Group and at managerial level. This is challenging in an industry that is traditionally dominated by men. BillerudKorsnäs has undertaken several initiatives aimed at addressing the under-representation of women in operational activities and at senior levels. The share of female employees was 24.1% during the last twelve months.
QUARTERLY HIGHLIGHTS
BillerudKorsnäs has decided to invest in an electrical back-up steam boiler at the Gruvön mill, which will improve the production availability and enable reduced emissions of fossil CO2 in case of production disturbances. Another investment that will reduce fossil CO2 emissions is related to the storage of biofuels at Karlsborg.
Tetra Pak and BillerudKorsnäs introduced a new collaboration for innovation aimed at tackling the food packaging industry's sustainability challenges and developing sustainable packaging solutions.
Holding of treasury shares
The holding of treasury shares was unchanged during the first quarter of 2021. At 31 March, 2021 the number of treasury shares amounted to 1 387 922, corresponding to approximately 0.7% of the total amount of shares which amounts to 208 219 834. The number of shares on the market was 206 831 912 at 31 March, 2021.
Annual General Meeting
The Annual General Meeting will be held on 5 May 2021. Due to the coronavirus pandemic, the 2021 Annual General Meeting will be conducted only through postal voting in accordance with temporary legislation. There will be no possibility for shareholders to participate in person or through representatives. The convening notice of the 2021 Annual General Meeting and all related documents are available on BillerudKorsnäs' website.
The Board of Directors proposes a dividend of SEK 4.30 per share (4.30) for 2020. The proposal entails a total share dividend of around SEK 890 million. The last day for trading in BillerudKorsnäs' shares including the right to a dividend is 5 May. The dividend is estimated to be paid on 12 May.
Risks and uncertainties
BillerudKorsnäs' products are generally dependent on the business cycle, in terms of both price development and potential sales volumes. The Group is exposed to currency fluctuations, since most revenues are invoiced in foreign currency, while a large part of operating expenses are in SEK. A more detailed description of risks and a sensitivity analysis is provided on pages 63-69 in the 2020 Annual and Sustainability Report.
Direct risks of the coronavirus pandemic for BillerudKorsnäs are related to supply chain disruptions, affecting our possibility to manufacture and supply products to customers, and to local outbreaks near our production sites, which can lead to production issues or that it becomes impossible to perform necessary repair and maintenance work. Indirect risks of the coronavirus pandemic are related to lower demand for the company's products and services, which can have a negative effect on the net sales, results and cash flow. BillerudKorsnäs monitors the development of the coronavirus pandemic closely and takes measures to follow the authorities' recommendations. Contingency plans have been created and are regularly being updated.
In the EU countries, the EU Directive on Single Use Plastic will result in a changed regulatory landscape for packaging. Changes in legislation and its implications for BillerudKorsnäs are monitored closely.
Related-party transactions
No transactions took place between BillerudKorsnäs and related parties that significantly affected the Group's position and earnings.
Financial calendar
Annual General Meeting – 5 May 2021 Q2 2021 report – 20 July 2021 Q3 2021 report – 22 October 2021
Solna, 27 April 2021 BillerudKorsnäs AB (publ)
Christoph Michalski President and CEO
This information constituted inside information prior to publication. This is information that BillerudKorsnäs AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. This report has been prepared in both a Swedish and an English version. The report has not been reviewed by the company's auditors.
SUMMARISED INCOME STATEMENT
| Quarter | Full year | ||||
|---|---|---|---|---|---|
| SEKm | Q1 -21 | Q4 -20 | Q1 -20 | 2020 | |
| Net sales | 6 520 | 5 803 | 6 364 | 23 884 | |
| Other income | 35 | 45 | 44 | 199 | |
| Change in inventories | -53 | 89 | -67 | -76 | |
| Raw materials and consumables | -3 245 | -3 058 | -3 301 | -12 637 | |
| Other external costs | -1 270 | -1 424 | -1 306 | -5 293 | |
| Employee benefits expense | -983 | -886 | -981 | -3 586 | |
| Depreciation and impairment of non-current assets | -475 | -478 | -486 | -1 938 | |
| Change in value of biological assets | - | - | - | 132 | |
| Profit/Loss from participations in associated companies | -1 | 72 | 13 | 89 | |
| Operating profit/loss | 528 | 163 | 280 | 774 | |
| Financial income and expenses | -42 | 11 | -78 | -95 | |
| Profit/Loss before tax | 486 | 174 | 202 | 679 | |
| Taxes | -109 | 68 | -38 | -3 | |
| Profit/Loss from continuing operations | 377 | 242 | 164 | 676 | |
| Discontinued operations | |||||
| Profit/loss from discontinued operations, net of tax | - | - | - | -16 | |
| Profit/loss for the period | 377 | 242 | 164 | 660 | |
| Profit/Loss attributable to: | |||||
| Owners of the parent company | 377 | 242 | 164 | 660 | |
| Non-controlling interests | - | - | - | - | |
| Net profit/loss for the period | 377 | 242 | 164 | 660 | |
| Earnings per share, SEK | 1.82 | 1.17 | 0.79 | 3.19 | |
| Diluted earnings per share, SEK | 1.82 | 1.17 | 0.79 | 3.19 |
SUMMARISED STATEMENT OF COMPREHENSIVE INCOME
| Quarter | ||||
|---|---|---|---|---|
| SEKm | Q1 -21 | Q4 -20 | Q1 -20 | 2020 |
| Net profit/loss for the period | 377 | 242 | 164 | 660 |
| Other comprehensive income | ||||
| Items that will not be reclassified to profit or loss | ||||
| Revaluation of forest land | - | - | - | 148 |
| Actuarial gains or losses on defined benefit pension plans | - | -4 | - | -4 |
| Change in fair value of shareholding in Other holdings | -4 | -7 | -21 | -28 |
| Tax attributable to items not to be reclassified to profit or loss | - | - | - | -30 |
| Total items never reclassified to profit or loss | -4 | -11 | -21 | 86 |
| Items that have been or may be reclassified subsequently to profit or loss | ||||
| Differences arising from the translation of foreign operations' accounts | 36 | -65 | 72 | -63 |
| Change in fair value of cash flow hedges | -105 | 190 | -672 | 40 |
| Tax attributable to items that have been or may be reclassified subsequently to profit or loss | 22 | -40 | 144 | -8 |
| Total items that have been or may be reclassified subsequently to profit or loss | -47 | 85 | -456 | -31 |
| Total comprehensive income for the period | 326 | 316 | -313 | 715 |
| Attributable to: | ||||
| Owners of the parent company | 326 | 316 | -313 | 715 |
| Non-controlling interests | - | - | - | - |
| Total comprehensive income for the period | 326 | 316 | -313 | 715 |
SUMMARISED BALANCE SHEET
| 31 Mar | 31 Mar | 31 Dec | |
|---|---|---|---|
| SEKm | 2021 | 2020 | 2020 |
| Intangible assets | 1 959 | 2 076 | 1 960 |
| Property, plant and equipment, including Right of use assets | 22 769 | 23 006 | 22 988 |
| Other non-current assets | 1 257 | 1 315 | 1 279 |
| Total non-current assets | 25 985 | 26 397 | 26 227 |
| Inventories | 3 472 | 3 657 | 3 629 |
| Accounts receivable | 3 369 | 2 904 | 2 350 |
| Other current assets | 929 | 1 370 | 1 118 |
| Cash and cash equivalents | 2 651 | 2 963 | 3 036 |
| Total current assets | 10 421 | 10 894 | 10 133 |
| Total assets | 36 406 | 37 291 | 36 360 |
| Equity attributable to owners of the parent company | 19 620 | 19 151 | 19 294 |
| Non-controlling interests | - | - | - |
| Total equity | 19 620 | 19 151 | 19 294 |
| Interest-bearing liabilities | 4 878 | 6 980 | 6 605 |
| Provisions for pensions | 833 | 872 | 836 |
| Other liabilities and provisions | 144 | 287 | 146 |
| Deferred tax liabilities | 3 583 | 3 593 | 3 609 |
| Total non-current liabilities | 9 438 | 11 732 | 11 196 |
| Interest-bearing liabilities | 2 191 | 1 082 | 984 |
| Accounts payables | 3 284 | 2 915 | 3 129 |
| Other liabilities and provisions | 1 873 | 2 411 | 1 757 |
| Total current liabilities | 7 348 | 6 408 | 5 870 |
| Total equity and liabilities | 36 406 | 37 291 | 36 360 |
SUMMARISED STATEMENT OF CHANGES IN EQUITY
| Quarter | |||
|---|---|---|---|
| SEKm | Q1 -21 | Q1 -20 | 2020 |
| Opening balance | 19 294 | 19 462 | 19 462 |
| Comprehensive income for the period | 326 | -313 | 715 |
| Share-based payment to be settled in equity instruments | - | 2 | 6 |
| Dividend to owners of the parent company | - | - | -889 |
| Closing balance | 19 620 | 19 151 | 19 294 |
| Equity attributable to: | |||
| Owners of the parent company | 19 620 | 19 151 | 19 294 |
| Non-controlling interests | - | - | - |
| Closing balance | 19 620 | 19 151 | 19 294 |
SUMMARISED CASH FLOW STATEMENT
| Quarter | ||||
|---|---|---|---|---|
| SEKm | Q1 -21 | Q4 -20 | Q1 -20 | Full year 2020 |
| Operating surplus, etc. * | 929 | 646 | 725 | 2 406 |
| Net financial items, taxes, etc. | -83 | 89 | -91 | -22 |
| Change in working capital, etc. | -481 | 517 | -790 | -53 |
| Cash flow from operating activities | 365 | 1 252 | -156 | 2 331 |
| Investments in intangible assets, property, plant and equipment | -200 | -309 | -282 | -1 250 |
| Acquisition of financial assets/ contribution associated companies | -19 | - | -2 | -2 |
| Disposal/repayment of financial assets/other holdings ** | 30 | - | - | 24 |
| Dividend from associated companies | - | - | - | 4 |
| Disposal of property, plant and equipment | - | - | - | 3 |
| Cash flow from investing activities | -189 | -309 | -284 | -1 221 |
| Change in interest-bearing receivables | 1 | -2 | 1 | -6 |
| Change in interest-bearing liabilities | -574 | -28 | -78 | -602 |
| Dividend to owners of the parent company | - | - | - | -889 |
| Cash flow from financing activities | -573 | -30 | -77 | -1 497 |
| Total cash flow (=change in cash and cash equivalents) | -397 | 913 | -517 | -387 |
| Cash and cash equivalents at start of period | 3 036 | 2 144 | 3 450 | 3 450 |
| Translation differences in cash and cash equivalents | 12 | -21 | 30 | -27 |
| Cash and cash equivalents at the end of the period | 2 651 | 3 036 | 2 963 | 3 036 |
** Includes the sale of BioBag of SEK 30 million in Q1 2021 and dividend from Bergvik Skog AB of SEK 24 million in 2020.
*RECONCILIATION OF OPERATING SURPLUS
| Quarter | Full year | |||
|---|---|---|---|---|
| SEKm | Q1 -21 | Q4 -20 | Q1 -20 | 2020 |
| Operating profit | 528 | 163 | 280 | 774 |
| Reversed depreciation | 475 | 478 | 486 | 1 938 |
| Earnings from associated companies | 1 | -72 | -13 | -89 |
| Pension liabilities | -7 | -25 | -4 | -48 |
| Other provisions | -24 | -29 | 12 | -36 |
| Net of produced and sold electricity certificates and sold emission rights | -44 | 131 | -38 | -5 |
| Incentive programmes | - | - | 2 | 6 |
| Scrapping of fixed assets | - | - | - | -2 |
| Revaluation of biological assets | - | - | - | -132 |
| Operating surplus, etc | 929 | 646 | 725 | 2 406 |
NOTE 1 ACCOUNTING POLICIES
The interim report for the Group is prepared in accordance with IAS 34 Interim Financial Reporting and the Swedish Annual Accounts Act. The accounting policies applied in this interim report are the same as those used in the most recent annual report for 2020, see pages 78-84 and page 129 for definitions of key figures. The interim report for the parent company is prepared in accordance with the Swedish Annual Accounts Act.
NOTE 2 FINANCIAL ASSETS AND LIABILITIES
| Fair value through profit or loss - hedge accounting |
Amortised cost |
Fair value through other compre hensive income |
Financial liabilities measured at amortised costs |
Total carrying amount |
Fair value |
|
|---|---|---|---|---|---|---|
| Valuation classification | Level 2 | Level 3 | ||||
| Group 31 March 2021 | ||||||
| Other shares and participations | - | - | 74 | - | 74 | 74 |
| Long-term receivables | - | 25 | - | - | 25 | 25 |
| Accounts receivable | - | 3 369 | - | - | 3 369 | 3 369 |
| Other receivables | 128 | 325 | - | - | 453 | 453 |
| Cash and cash equivalents | - | 2 651 | - | - | 2 651 | 2 651 |
| Total | 128 | 6 370 | 74 | - | 6 572 | 6 572 |
| Non-current interest-bearing liabilities | - | - | - | 4 878 | 4 878 | 4 894 |
| Current interest-bearing liabilities | - | - | - | 2 191 | 2 191 | 2 194 |
| Accounts payables | - | - | - | 3 284 | 3 284 | 3 284 |
| Other liabilities | 57 | - | - | 278 | 335 | 335 |
| Total | 57 | - | - | 10 631 | 10 688 | 10 707 |
| Fair value through profit or loss - hedge accounting |
Amortised cost |
Fair value through other compre hensive income |
Financial liabilities measured at amortised costs |
Total carrying amount |
Fair value |
|
|---|---|---|---|---|---|---|
| Valuation classification | Level 2 | Level 3 | ||||
| Group 31 December 2020 | ||||||
| Other shares and participations | - | - | 108 | - | 108 | 108 |
| Long-term receivables | - | 26 | - | - | 26 | 26 |
| Accounts receivable | - | 2 350 | - | - | 2 350 | 2 350 |
| Other receivables | 295 | 392 | - | - | 687 | 687 |
| Cash and cash equivalents | - | 3 036 | - | - | 3 036 | 3 036 |
| Total | 295 | 5 804 | 108 | - | 6 207 | 6 207 |
| Non-current interest-bearing liabilities | - | - | - | 6 605 | 6 605 | 6 634 |
| Current interest-bearing liabilities | - | - | - | 984 | 984 | 984 |
| Accounts payables | - | - | - | 3 129 | 3 129 | 3 129 |
| Other liabilities | 96 | - | - | 238 | 334 | 334 |
| Total | 96 | - | - | 10 956 | 11 052 | 11 081 |
NOTE 3 OTHER DISCLOSURES
Other disclosures in accordance with IAS 34.16A can be found on the pages prior to the income statement and the statement of comprehensive income. Information regarding product areas/segments can be found on pages 4-6, information regarding financing on pages 6-7, seasonal effects on page 19 and events after the end of the quarter on page 3.
KEY FIGURES
| Jan-Mar | Full year | |||
|---|---|---|---|---|
| 2021 | 2020 | 2020 | ||
| Margins | ||||
| EBITDA, % | 15 | 12 | 11 | |
| Operating margin, % | 8 | 4 | 3 | |
| Return (rolling 12 months) | ||||
| Return on capital employed, % | 4 | 3 | 3 | |
| Return on equity, % | 5 | 37 | 3 | |
| Capital structure at end of period | ||||
| Capital employed, SEKm | 24 854 | 25 102 | 24 667 | |
| Working capital, SEKm | 2 734 | 2 501 | 2 292 | |
| Equity attributable to owners of the parent company, SEKm | 19 620 | 19 151 | 19 294 | |
| Interest-bearing net debt, SEKm | 5 234 | 5 951 | 5 373 | |
| Net debt/equity ratio | 0.27 | 0.31 | 0.28 | |
| Interest-bearing net debt / EBITDA, multiple | 1.8 | 2.3 | 2.0 | |
| Key figures per share | ||||
| Earnings per share, SEK | 1.82 | 0.79 | 3.19 | |
| Dividend (for the financial year) per share, SEK | - | - | 4,30* | |
| Other key figures | ||||
| Working capital as percentage of net sales, % | 10 | 10 | 11 | |
| Operative investments, SEKm | 200 | 282 | 1 250 | |
| Average number of employees | 4 415 | 4 509 | 4 468 |
*Board´s proposal
RECONCILIATION OF ALTERNATIVE PERFORMANCE MEASURES
| Quarter | Full year | |||
|---|---|---|---|---|
| Adjusted EBITDA, SEKm | Q1 - 21 | Q4 - 20 | Q1 - 20 | 2020 |
| Operating profit | 528 | 163 | 280 | 774 |
| Depreciation and impairment of non-current assets | 475 | 478 | 486 | 1 938 |
| EBITDA | 1 003 | 641 | 766 | 2 712 |
| Items affecting comparability** | - | -73 | 25 | -9 |
| Adjusted EBITDA | 1 003 | 568 | 791 | 2 703 |
| Adjusted Operating profit, SEKm | ||||
| Operating profit | 528 | 163 | 280 | 774 |
| Items affecting comparability** | - | -73 | 25 | -9 |
| Adjusted Operating profit | 528 | 90 | 305 | 765 |
| Adjusted earnings per share, SEK | ||||
| Profit attributed to owners of the parent company, SEKm | 377 | 242 | 164 | 660 |
| Items affecting comparability**, attributed to owners of the parent company, SEKm | - | -57 | 20 | -5 |
| Adjusted profit attributed to owners of the parent company, SEKm | 377 | 185 | 184 | 655 |
| Weighted number of outstanding shares, thousands | 206 832 | 206 832 | 206 790 | 206 816 |
| Adjusted earnings per share | 1.82 | 0.89 | 0.89 | 3.17 |
| Adjusted Return on capital employed (ROCE), SEKm | ||||
| Adjusted Operating profit over 12 months * | 988 | 765 | 739 | 765 |
| Average capital employed over 12 months | 25 099 | 25 116 | 24 553 | 25 116 |
| Adjusted Return on capital employed | 4% | 3% | 3% | 3% |
| Interest-bearing net debt / Adjusted EBITDA, multiple | ||||
| Interest-bearing net debt | 5 234 | 5 373 | 5 951 | 5 373 |
| Adjusted EBITDA over 12 months* | 2 915 | 2 703 | 2 587 | 2 703 |
| Interest-bearing net debt / Adjusted EBITDA | 1.8 | 2.0 | 2.3 | 2.0 |
| Items affecting comparability**, SEKm | ||||
| Restructuring (Operating expenses) | - | - | 25 | 36 |
| Revaluation of biological assets (Change in value of biological assets) | - | - | - | -132 |
| UPM - compensation (Raw materials and consumables) | - | - | - | 160 |
| Revaluation of biological assets in associated companies (Profit from participations in | ||||
| associated companies) | - | -73 | - | -73 |
| Items affecting comparability | - | -73 | 25 | -9 |
*12 months is calculated by adding accumulated amounts for the current year plus full previous year, minus prior year's accumulated amounts for periods exceeding 12 months from the balance sheet date.
** Revenue = -, Cost = +
RECONCILIATION OF ALTERNATIVE PERFORMANCE MEASURES (CONT.)
| 31 Mar | 31 Mar | 31 Dec | |
|---|---|---|---|
| Capital employed, SEKm | 2021 | 2020 | 2020 |
| Total assets | 36 406 | 37 291 | 36 360 |
| Accounts payables | -3 284 | -2 915 | -3 129 |
| Other liabilities and provisions | -2 017 | -2 699 | -1 903 |
| Deferred tax liabilities | -3 583 | -3 593 | -3 609 |
| Interest-bearing non-current assets | -17 | -19 | -16 |
| Cash and Cash equivalents | -2 651 | -2 963 | -3 036 |
| Capital employed | 24 854 | 25 102 | 24 667 |
| 31 Mar | 31 Mar | 31 Dec | |
| Working capital, SEKm | 2021 | 2020 | 2020 |
| Inventories | 3 472 | 3 657 | 3 629 |
| Accounts receivables | 3 369 | 2 904 | 2 350 |
| Other operating receivables | 929 | 1 370 | 1 118 |
| Accounts payables | -3 284 | -2 915 | -3 129 |
| Other operating liabilities (excl provisions) | -1 828 | -2 315 | -1 690 |
| Tax liabilities | 76 | -200 | 14 |
| Working capital | 2 734 | 2 501 | 2 292 |
| 31 Mar | 31 Mar | 31 Dec | |
| Interest-bearing net debt, SEKm | 2021 | 2020 | 2020 |
| Interest bearing provisions | 833 | 872 | 836 |
| Interest bearing non-current liabilities | 4 878 | 6 980 | 6 605 |
| Interest bearing current liabilities | 2 191 | 1 081 | 984 |
| Interest-bearing non-current assets | -17 | -19 | -16 |
| Cash and Cash equivalents | -2 651 | -2 963 | -3 036 |
| Interest-bearing net debt | 5 234 | 5 951 | 5 373 |
Seasonal effects
BillerudKorsnäs' business is subject to seasonal fluctuations to a relatively limited extent. Periodical maintenance shutdowns have the largest impact, as they involve each unit stopping production for around one week. The loss of production results in somewhat lower deliveries over an extended period before, during and after the shutdown. It should also be noted that the Group usually has a somewhat higher cost level in the fourth quarter than in previous quarters.
PLANNED MAINTENANCE SHUTDOWNS
In addition to ongoing maintenance during production, BillerudKorsnäs' production units normally also require more extensive maintenance at some time during the year. Maintenance requires the production of pulp, paper and board to stop. The principal cost items in a maintenance shutdown are loss of volumes arising from the shutdown and fixed costs, mainly maintenance and overtime costs, as well as a certain portion of variable costs including higher consumption of electricity and wood when production is restarted. The effects of shutdowns on earnings vary depending on the extent of the measures carried out, their nature and the actual length of the shutdown. The estimated cost of shutdown involves an assessment of the impact on earnings of a normal shutdown compared with a quarter during which no periodic maintenance shutdown takes place.
No planned maintenance shutdowns were carried out in the first quarter of 2021.
ESTIMATED MAINTENANCE SHUTDOWN COST
| Production units | Estimated shutdown cost ¹ |
Estimated breakdown of shutdown cost |
Planned dates of maintenance shutdown |
|||
|---|---|---|---|---|---|---|
| SEKm | Board | Paper | 2021 | 2020 | 2019 | |
| Gävle | ~ 165 | ~ 94% | ~ 6% | Q3 | Q3 | Q2 |
| Gruvön | ~ 170 | ~ 92% | ~ 8% | Q2 | Q3 | Q3 |
| Frövi | ~ 115 | 100% | Q4 | Q4 | Q4 | |
| Skärblacka | ~ 120 | ~ 12% | ~ 88% | Q4 | Q4 | Q2 |
| Karlsborg | ~ 80 | 100% | Q3 | Q3 | Q3 | |
| Pietarsaari | ~ 15 | 100% | - | Q4 | - | |
| Rockhammar | ~ 15 | 100% | Q3 | Q4 | Q4 |
¹ Maintenance shutdowns at Beetham have an insignificant effect on BillerudKorsnäs' total earnings.
Definitions
ADJUSTED KEY FIGURES
Adjusted key figures on EBITDA, Operating profit, Return on capital employed and Earnings per share provide a better understanding of the underlying business performance and enhance comparability from period to period, when the effect of items affecting comparability are adjusted for. Items affecting comparability can include additional project costs for major projects, major restructuring/writedowns/revaluations, litigations, specific impact due to strategic decisions, and significant earnings effects from acquisition and disposals.
ADJUSTED EBITDA
Operating profit before depreciation and amortisation adjusted for items affecting comparability.
ADJUSTED EARNINGS PER SHARE Earnings per share adjusted for items affecting comparability after tax attributable to owners of the parent company.
ADJUSTED OPERATING PROFIT Operating profit adjusted for items affecting comparability.
CAPITAL EMPLOYED
Total assets less non-interest bearing liabilities, non-interest bearing provisions and interest-bearing assets. The measure is used to quantify the net total assets used in the operating business, and is used as a component in measuring operating profitability.
EARNINGS PER SHARE
Profit for the period, attributable to owners of the parent, divided by the average number of shares in the market.
EQUITY
Equity at the end of the period.
EBITDA
Operating profit before depreciation and amortisation (EBITDA = Earnings before Interest, Taxes, Depreciation and Amortisation). EBITDA is a measure of operating performance. It is a profit measure that is close to the cash flow from operating activities.
EBITDA, %
Operating profit before depreciation (EBITDA = Earnings before Interest, Taxes, Depreciation and Amortisation) as a percentage of net sales. The measure is used in business review as well as for benchmarking with peer companies.
INTEREST-BEARING NET DEBT Interest-bearing provisions and liabilities less interest-bearing assets. The measure is used to quantify the debt financing, taken the amount of financial assets into account. The measure is used as a component in measuring financial risk.
INTEREST-BEARING NET DEBT/ EBITDA
Interest bearing net debt at the end of the period divided by EBITDA for the last twelve months. The measure shows the size of the interest-bearing net debt compared to the repayment capacity. A higher (lower) ratio indicates a higher (lower) risk.
INTEREST-BEARING NET DEBT/ADJUSTED EBITDA Interest bearing net debt at the end of the period divided by EBITDA for the last twelve months adjusted for items affecting comparability.
NET DEBT/EQUITY RATIO Interest-bearing net debt divided by equity. The ratio shows the mix between interest-bearing net debt and equity financing. A higher ratio means higher financial leverage and may have positive effects on return on equity, but imply a higher financial risk.
OPERATING CASH FLOW AFTER
OPERATIVE INVESTMENTS Cash flow from the operating activities, including gross investments in property, plant and equipment, and intangible assets. The measure shows cash flow generated in the operating business, which provides the amount of cash flows available to repay debt, acquire and invest in other businesses and pay dividends to the shareholders.
OPERATING MARGIN
Operating profit as a percentage of net sales. Operating margin shows the percentage of revenue remaining as operating profit after deducting all operating expenses. The measure is used in business review as well as for benchmarking with peer companies.
RETURN ON CAPITAL EMPLOYED (ROCE)
Operating profit calculated over 12 months as a percentage of average capital employed calculated per quarter. The return on capital employed is a measure that shows how effectively total net operating assets are used in order to generate return in the operating business. The measure takes capital invested in the operating activities into account and is used in business review and benchmarking with peer companies.
RETURN ON EQUITY
Profit calculated over 12 months, attributable to owners of the parent company, as a percentage of average shareholders' equity calculated per quarter, attributable to owners of the parent company. The measure represents total profitability compared to the equity invested by the parent company's shareholders.
WORKING CAPITAL
Inventories, accounts receivables and other operating receivables less accounts payables and other operating liabilities. The measure shows the amount of current net assets that is tied up in the business. Together with non-current assets, working capital constitutes the operating capital employed to generate operating returns.
WORKING CAPITAL AS PERCENTAGE OF NET SALES
Average working capital for the last three months, divided by annual net sales at year end or annualised net sales during interim-quarter (net sales for the quarter multiplied by four). Working capital in relation to net sales shows how effectively the working capital is used. A lower percentage means less capital is tied up to generate a given amount of revenue, and an increased ability to internally finance growth and return to shareholders.
Parent company
SUMMARISED INCOME STATEMENT
| Quarter | Full year | |||
|---|---|---|---|---|
| SEKm | Q1 -21 | Q1 -20 | 2020 | |
| Operating income* | 237 | 142 | 402 | |
| Operating expenses | -130 | -138 | -531 | |
| Operating profit/loss | 107 | 4 | -129 | |
| Financial income and expenses | -41 | -79 | -84 | |
| Profit/Loss after financial income and expenses | 66 | -75 | -213 | |
| Appropriations | - | - | 606 | |
| Profit/loss before tax | 66 | -75 | 393 | |
| Taxes | -14 | 18 | -89 | |
| Net profit/loss for the period | 52 | -57 | 304 |
* Including currency hedging etc.
SUMMARISED BALANCE SHEET
| 31 Mar | 31 Mar | 31 Dec | |
|---|---|---|---|
| SEKm | 2021 | 2020 | 2020 |
| Non-current assets | 10 695 | 10 690 | 10 695 |
| Current assets | 16 569 | 20 648 | 16 706 |
| Total assets | 27 264 | 31 338 | 27 401 |
| Shareholders' equity | 8 009 | 8 482 | 7 957 |
| Untaxed reserves | 1 516 | 1 512 | 1 516 |
| Provisions | 229 | 234 | 231 |
| Liabilities | 17 510 | 21 110 | 17 697 |
| Total equity and liabilities | 27 264 | 31 338 | 27 401 |
QUARTERLY DATA
The Group's business are organized on the basis of the functional areas Wood Supply, Operations and Commercial and is governed by two product areas Board and Paper.
Solutions and Other includes Wood Supply, Scandfibre Logistics AB, Managed Packaging, rental operations, dormant companies, income from the sale of businesses, items affecting comparability and costs due to increased investments in the production structure. Other also includes Group-wide functions, Group eliminations (including IFRS 16) and profit/loss from participation in associated companies. Currency hedging etc. includes results from hedging of the Group's net currency flows and revaluation of accounts receivables and payments from customers. The part of the currency exposure that relates to changes in exchange rates for invoicing is included in the product area's profit/loss.
Quarterly net sales per product area and for the Group
| 2021 | 2020 | 2019 | ||||||
|---|---|---|---|---|---|---|---|---|
| SEKm | Q1 -21 | Q4 -20 | Q3 -20 | Q2 -20 | Q1 -20 | Q4 -19 | Q3 -19 | Q2 -19 |
| Product area Board | 3 785 | 3 370 | 3 059 | 3 571 | 3 600 | 3 291 | 3 063 | 3 210 |
| Product area Paper | 1 903 | 1 777 | 1 835 | 1 940 | 2 024 | 1 890 | 2 116 | 2 370 |
| Solutions & Other | 696 | 667 | 637 | 722 | 724 | 706 | 674 | 751 |
| Currency hedging, etc. | 136 | -11 | 30 | -77 | 16 | -72 | -20 | -38 |
| Total Group | 6 520 | 5 803 | 5 561 | 6 156 | 6 364 | 5 815 | 5 833 | 6 293 |
Quarterly EBITDA per product area and for the Group
| 2021 2020 |
2019 | |||||||
|---|---|---|---|---|---|---|---|---|
| SEKm | Q1 -21 | Q4 -20 | Q3 -20 | Q2 -20 | Q1 -20 | Q4 -19 | Q3 -19 | Q2 -19 |
| Product area Board | 705 | 481 | 266 | 571 | 537 | 493 | 374 | 324 |
| Product area Paper | 263 | 165 | 241 | 323 | 306 | 243 | 283 | 311 |
| Solutions & Other | -101 | 6 | 33 | -83 | -92 | -69 | -2 | -18 |
| Currency hedging, etc. | 136 | -11 | 30 | -76 | 15 | -73 | -20 | -38 |
| Total Group | 1 003 | 641 | 570 | 735 | 766 | 594 | 635 | 579 |
Quarterly EBITDA margin per product area and for the Group
| 2021 | 2020 | 2019 | ||||||
|---|---|---|---|---|---|---|---|---|
| % | Q1 -21 | Q4 -20 | Q3 -20 | Q2 -20 | Q1 -20 | Q4 -19 | Q3 -19 | Q2 -19 |
| Product area Board | 19 | 14 | 9 | 16 | 15 | 15 | 12 | 10 |
| Product area Paper | 14 | 9 | 13 | 17 | 15 | 13 | 13 | 13 |
| Group | 15 | 11 | 10 | 12 | 12 | 10 | 11 | 9 |
Adjusted quarterly EBITDA, including maintenance shutdowns, per product area and for the Group
| 2021 | 2020 | 2019 | ||||||
|---|---|---|---|---|---|---|---|---|
| SEKm | Q1 -21 | Q4 -20 | Q3 -20 | Q2 -20 | Q1 -20 | Q4 -19 | Q3 -19 | Q2 -19 |
| Product area Board | 705 | 645 | 577 | 571 | 537 | 619 | 503 | 484 |
| Product area Paper | 263 | 296 | 329 | 323 | 306 | 243 | 348 | 459 |
| Solutions & Other | -101 | -67 | 33 | -44 | -67 | -45 | 2 | -58 |
| Currency hedging, etc. | 136 | -11 | 30 | -76 | 15 | -73 | -20 | -38 |
| Total Group | 1 003 | 863 | 969 | 774 | 791 | 744 | 833 | 847 |
| Costs for maint. shutdowns | - | -295 | -399 | - | - | -126 | -194 | -308 |
| Items affecting comparability | - | 73 | - | -39 | -25 | -24 | -4 | 40 |
| EBITDA | 1 003 | 641 | 570 | 735 | 766 | 594 | 635 | 579 |
Adjusted quarterly EBITDA margin, including maintenance shutdowns, per product area and for the Group
| 2021 | 2020 | 2019 | ||||||
|---|---|---|---|---|---|---|---|---|
| % | Q1 -21 | Q4 -20 | Q3 -20 | Q2 -20 | Q1 -20 | Q4 -19 | Q3 -19 | Q2 -19 |
| Product area Board | 19 | 19 | 19 | 16 | 15 | 19 | 16 | 15 |
| Product area Paper | 14 | 17 | 18 | 17 | 15 | 13 | 16 | 19 |
| Total Group | 15 | 15 | 17 | 13 | 12 | 13 | 14 | 13 |
Quarterly operating profit/loss, per product area and for the group
| 2021 | 2020 | 2019 | ||||||
|---|---|---|---|---|---|---|---|---|
| SEKm | Q1 -21 | Q4 -20 | Q3 -20 | Q2 -20 | Q1 -20 | Q4 -19 | Q3 -19 | Q2 -19 |
| Product area Board | 380 | 149 | -67 | 233 | 201 | 158 | 48 | 100 |
| Product area Paper | 145 | 51 | 120 | 202 | 185 | 119 | 152 | 180 |
| Solutions & Other | -133 | -26 | 3 | -113 | -122 | -101 | -31 | -48 |
| Currency hedging, etc. | 136 | -11 | 30 | -77 | 16 | -73 | -20 | -38 |
| Total Group | 528 | 163 | 86 | 245 | 280 | 103 | 149 | 194 |
Quarterly operating margin per product area and for the group
| 2021 | 2020 | 2019 | ||||||
|---|---|---|---|---|---|---|---|---|
| % | Q1 -21 | Q4 -20 | Q3 -20 | Q2 -20 | Q1 -20 | Q4 -19 | Q3 -19 | Q2 -19 |
| Product area Board | 10 | 4 | -2 | 7 | 6 | 5 | 2 | 3 |
| Product area Paper | 8 | 3 | 7 | 10 | 9 | 6 | 7 | 8 |
| Total Group | 8 | 3 | 2 | 4 | 4 | 2 | 3 | 3 |
Quarterly sales volumes per product area
| 2021 | 2020 | 2019 | ||||||
|---|---|---|---|---|---|---|---|---|
| ktonnes | Q1 -21 | Q4 -20 | Q3 -20 | Q2 -20 | Q1 -20 | Q4 -19 | Q3 -19 | Q2 -19 |
| Product area Board | 521 | 460 | 419 | 472 | 491 | 432 | 404 | 414 |
| Product area Paper | 255 | 227 | 238 | 231 | 250 | 224 | 255 | 262 |
| Total Group | 776 | 687 | 657 | 703 | 741 | 656 | 659 | 676 |
This is BillerudKorsnäs
BillerudKorsnäs' mission is to challenge conventional packaging for a sustainable future. As a leading supplier of innovative packaging solutions and high-quality packaging material based on renewable raw material, sustainability forms the foundation for continued profitable growth. Our wood raw material comes from sustainable managed forests and manufacturing takes place at resource-efficient, integrated production units.
Our customers are packaging manufacturers, brand owners and large retail and supermarket chains. Through close collaboration with customers and partners all over the world, we are able to offer a customised and broad product portfolio that features a high degree of innovation and a clear sustainability focus.
Demand is driven by global megatrends, particularly a significantly greater awareness of sustainability, rising urbanisation and changing consumption patterns. Consumer segments, account for about three-quarters of sales. While Europe is the core market, BillerudKorsnäs is gradually strengthening its presence in the leading growth markets of Asia, as well as in the Americas.
Innovative packaging solutions and renewable packaging materials from BillerudKorsnäs reduce the impact on the climate, cut the use of resources along the whole value chain and contribute to a sustainable future.
BUSINESS MODEL
Our business model is based on high-performance materials from forests in the north, advice, service and the collective knowledge held by a global network of machine suppliers, packaging manufacturers, researchers and design agencies. Innovative and sustainable packaging solutions are developed in close collaboration with customers all over the world that demand the highest standards of quality, performance and sustainability.
STRATEGIC FOCUS
BillerudKorsnäs' overall objective is sustainable and profitable growth. Our strategy is based on four priorities: Drive performance, Drive profitable growth by creating customer value, Accelerate the speed in innovation and Expand in the value chain. In addition we view our employees as our most important resource in terms of driving change and realising our strategy and vision.
VALUE DRIVERS
- Smarter packaging solutions that optimise our customers' offering.
- High-performance materials based on renewable raw material from responsibly managed forests.
- Leading position in the growing global packaging market.
- A sustainability-focused holistic approach to the entire packaging value chain, from raw material all the way to the end-customer and recycling.
Find out more at billerudkorsnas.com
BillerudKorsnäs Aktiebolag (publ) • Postal address: Box 703, SE-169 27 Solna, Sweden • Visitors' address: Evenemangsgatan 17
Company reg. no. 556025-5001 • Tel +46 8 553 335 00 • [email protected]
www.billerudkorsnas.com