IMPROVED MARGINS AND STRONG CASH FLOW
APRIL -
- Sales volume amounted to 5,193 (5,371 tonnes) a decline by 3%.
-
Net sales amounted to
SEK 274.6 (267.1) million, an increase by 3%. The organic decline was 10%. -
Operating profit amounted to
SEK 32.0 (13.5) million, an increase by 137%. Government grant for electricity is included amounting toSEK 5.5 million . - The operating margin declined to 11.6% (5.0%). Operating margin excluding government grant for electricity was 9.6%.
-
Profit for the period amounted to
SEK 23.7 (9.4) million, an increase by 152%. -
Earnings per share before dilution amounted to
SEK 1.18 (0.47) and after dilution toSEK 1.13 (0.45). -
Net debt amounted to
SEK 63.1 (107.1) million at the end of the period, 0.6 times (1.1 times) EBITDA. -
Cash flow from operating activities increased to
SEK 22.4 (-18.1) million.
JANUARY -
- Sales volume amounted to 10,085 (10,312 tonnes) a decline by 2%.
-
Net sales amounted to
SEK 525.6 (493.8) million, an increase by 6%. The organic decline was 6%. -
Operating profit amounted to
SEK 47.6 (24.9) million, an increase by 91%. Government grant for electricity is included amounting toSEK 5.5 million . - The operating margin increased to 9.1% (5.0%). Operating margin excluding government grant for electricity was 8.0%.
-
Profit for the period amounted to
SEK 37.0 (18.2) million, an increase by 103%. -
Earnings per share before dilution amounted to
SEK 1.85 (0.91), and after dilution, toSEK 1.76 (0.87). -
Net debt amounted to
SEK 63.1 (107.1) million at the end of the period, 0.6 times (1.1 times) EBITDA. -
Cash flow from operating activities increased to
SEK 43.3 (-17.1) million.
Market conditions
The volumes in our industry have continued to decline during the second quarter, although at a lower pace than in 2022. Our view is that our market share in
The integration of the acquisition Alphaplex is continuing according to plan and our position on the important German market has been fortified. It is also positive that our initiative to increase our presence outside of
Stronger margins and cash flow
The volumes declined by 3 percent during the second quarter while the net sales increased by 3 percent. The increased net sales were positively affected by currency movements as well as the acquisition, whereas the lower raw material prices affected net sales negatively. The application areas that have been strong during the quarter are energy, automotive, industry and security, while construction industry is generally weak but where we have noted a positive seasonal effect.
We noted, during the second quarter, a continued good development regarding operating profit and cash flow. The product mix has been favorable and the share of high-quality products has increased. Our initiative regarding a more efficient material utilization has given results and contributed together with the favorable product mix to the increased profit. The gross margin increased to 21.5 percent (14.3). The operating profit increased to
Our work with strengthening the cash flow continues to give results. The operating cash flow improved significantly in comparison to previous year thanks to the higher operating profit and an improvement in working capital. Primarily, we have managed to keep the stock on lower levels based on an expectation of continuing decline of raw material prices. The strong cash flow has also given us the opportunity to reduce the net debt and together with the increased profit the net debt ratio has decreased.
Sustainability
We are going to fulfill our commitment to reduce the environmental impact. Our activities, with an intention of reducing the environmental footprint and thereby increase the supplier responsibility, have continued during the quarter. Our ambition and goal, in the long run, is that this will lead to an increased awareness and recycling ratio of materials in the supply chain and therefore a reduced carbon footprint.
We have begun an extensive life cycle analysis of our products. The analysis is expected to be completed during 2023 and will contribute with increased transparency of our environmental impact. The result will be an important foundation for our continued sustainability work together with our customers.
Outlook
Uncertainty in the market remains high. We have though a well diversified customer and product portfolio with a good spread of risks within different industries and markets which gives us good conditions to keep working forward on a stable ground.
Our short term ambitions to maintain a good margin and to improve the cash flow together with the work to develop our long term sustainable operations gives us a useful basis for a continued profitable growth journey.
President and CEO
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Forward-looking information
Certain statements in this report are forward-looking and the actual outcome may be significantly different. In addition to the specific mentioned factors, other factors may have material impact on the actual outcome. Such factors include, but are not limited to, the general economic climate, exchange-rate fluctuations and changes in interest rates, political developments, the impact of competing products and the prices of such products, interruptions to the access to raw materials.
This information is such information that
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