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Paper and pulp company announces bump in profits for second quarter

Home Business Management Finance & Investment Paper and pulp company announces bump in profits for second quarter

SAPPI has delivered strong results for the second quarter of its financial year, ending March 31 2022.

Tight global paper markets have pushed up paper and pulp selling prices and offset extraordinary cost inflation.

The Russian-Ukrainian conflict triggered renewed volatility in global commodity markets, further disrupting already constrained global supply chains, and intensifying cost inflation across all regions and all product segments.

Commenting on the group’s results, Sappi CEO Steve Binnie said: “I am very proud of the excellent performance during the quarter particularly in light of the impact of Covid-19 in the last two years and the global economic turmoil.

Despite headwinds SAPPI improved earnings before interest, taxes, depreciation, and amortization, (EBITDA) by 40 percent on the previous quarter, and reduced net debt to US$1,793M from US$2,070M a year ago.

Earnings per share are US$0.35 cents, up from US$0.20 cents in the previous quarter, providing evidence of steadily improving profitability of the group, Binnie said.

The full results announcement is available at www.sappi.com

Looking forward, Binnie said: “In light of the favourable operating environment, the group is in a strong position to maintain the recent momentum and the underlying EBITDA for the third quarter should be consistent with that of the second quarter subject to the impacts of the annual maintenance shuts.”

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