Arctic Paper significantly improves financial results In 2014

25 March 2015

The Arctic Paper Group generated significantly sounder financial results for 2014 than in the previous year. EBITDA was PLN 238.5m (growth of over 227%), operating profit exceeded PLN 116.6m (compared to a loss of PLN 151.6m the year before), and net profit was PLN 78.2m (compared to a loss of PLN 152.2m in 2013). Sales revenues in 2014 were PLN 3.1bn, similar to the amount in 2013.

The good financial results of 2014 were generated thanks to the introduction of reorganization measures and organizational efficiencies during the previous year. The results for 2014 were also influenced by favourable external factors such as pulp prices and currency exchange rates. The beginning of 2015 has proven that the volatility of the European currencies is a factor to be more aware of.

Excluding Rottneros, the Arctic Paper Group generated EBITDA in 2014 of PLN 146.1m (growth of 83.7%), an operating result of PLN 57.9m (compared to a loss the previous year) and net profit of PLN 21.3m (compared to a loss in 2013). Sales revenue in 2014 was PLN 2.4bn, or about 1.8% lower than in 2013.

"Financially, all of our actions seek a single goal: stability", said Wolfgang Lübbert, CEO of Arctic Paper. "Entering 2015 we have observed greater variability in exchange rates than in recent years. Such signals always demand our vigilance and care in taking decisions and our aim is to further reduce the ratio of net debt to EBITDA and to optimize working capital. The anticipated positive effects of the changes launched in mid-2013 to cut costs and optimize operations are clearly visible today. Our paper mill in Kostrzyn achieved record results at the level of production and sales, and the sales activity on Scandinavian markets gained a new, more efficient structure. We also centralized our logistics activity to improve the service level and effectiveness of the group."