Yahoo Finance

• Total Turnover: 529 million, a 2% increase quarter on quarter.

• EBITDA: 160 million, maintaining an EBITDA margin of 22%.

• Sales Volume Growth: 17% increase in the paper segment quarter on quarter.

• CapEx: 36 million, with approximately 60% allocated to environmental or sustainability investments.

• Net Debt: Increased by 43 million, with a net debt to EBITDA ratio of 1.25%.

• Cash Flow Generation: 57 million in the quarter.

• Tissue Sales Increase: 62% year on year, supported by market demand and new acquisitions.

• Packaging Sales Growth: 31% increase in tons and 41% increase in square meters year on year.

• International Sales: Accounted for 81% of turnover, up from 51% in the first quarter of 2023.

• Debt Maturity Profile: 73% of total debt tied to sustainability and 89% issued on a flat rate basis.

• Liquidity: 308 million in liquidity, including credit facilities and cash on hand.

• Warning! GuruFocus has detected 3 Warning Sign with DCCPF.

Release Date: May 13, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• The Navigator Co SA (POELF) achieved a total turnover of 529 million, marking a 2% increase quarter on quarter.

• The company has successfully diversified its business, with non-core businesses now representing 45% of sales, particularly in the tissue and packaging segments.

• Navigator's expansion into sustainable packaging solutions has contributed to reducing single-use plastics, showcasing its commitment to environmental stewardship.

• The tissue segment has seen significant growth, with sales increasing by 62% year on year, supported by acquisitions in the UK and Spain.

• Navigator has maintained a strong financial position with a net debt to EBITDA ratio of 1.25% and a solid liquidity position of 308 million.

Negative Points

• The company faced increased energy and chemical costs, impacting overall expenditure and putting pressure on margins.

• There was a decline in the benchmark index for printing and writing papers, affecting sales in these segments.

• The mix of products and geographical regions resulted in lower average prices, contributing to margin compression.

• Navigator's operating expenditures increased over the last two quarters, primarily due to volatile energy prices.

• The company is facing challenges from geopolitical instability and protectionist policies, which could impact future market dynamics and costs.

Q & A Highlights

Q: How is the top of the cost curve managing in the Nordics with higher wood costs, and are there any further capacity rationalization announcements in Europe? Also, regarding your flexible packaging business, would you consider moving further downstream or focus purely on upstream craft paper production? A: (Antonio Jose Pereira Redondo, CEO) The cost escalation, particularly in wood, has pressured some competitors, leading to closures in Europe, removing 7% of capacity. The operating rate is around 85% for uncoated paper, higher than coated paper. In the US, a major closure is announced, affecting profitability and production costs. Regarding flexible packaging, we currently focus on paper production for converters and have no plans to move downstream.