In This Article:
Release Date: April 29, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Net sales increased by 6% compared to the same period last year, driven by higher product prices.
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The natural grease proof segment achieved all-time high levels in net sales, EBITDA, and EBITDA margin.
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Demand for specialty papers remained healthy, with stable performance across key markets.
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The company is well-positioned in niche markets with growing demand for sustainable materials.
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Investment projects, such as the Beckhammar project, are proceeding according to plan and expected to deliver significant EBITDA benefits by 2026.
Negative Points
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The EBITDA margin slightly decreased to 18.1% despite stable overall performance.
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Sales volumes in the craft paper segment decreased by 5% compared to the same quarter last year.
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Currency fluctuations had a negative impact on EBITDA, with a 13 million SEK negative effect due to revaluation of receivables and payables.
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The board decided to remove the dividend policy and proposes no dividend for the AGM, with only a potential extraordinary dividend considered later in 2025.
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Higher input costs, particularly for raw materials like pulp, negatively impacted the financial performance.
Q & A Highlights
Q: Can you elaborate on the impact of potential US tariffs for Nordic Paper? A: (CEO, Amitta Hernande) Nordic Paper's exposure to North America is 20% of our net sales, including large volumes to Canada and the US. The US market relies heavily on imports as it cannot meet its own demand. We haven't seen any effects from tariffs yet, and we believe we will continue to satisfy US customer needs with our natural greaseproof paper.
Q: What is the outlook for the second quarter regarding demand and pricing? A: (CEO, Amitta Hernande) We expect demand for our specialty papers to remain healthy in Q2. We have implemented some price increases in the craft paper segment, which will be effective from Q2. The average prices for craft paper will increase slightly, while prices for natural greaseproof paper are expected to remain stable.
Q: How did currency fluctuations impact your financial results this quarter? A: (CFO, Nicholas Eriksson) The SEK strengthened against the US dollar, but our exposure to the dollar is small due to purchases in the same currency. We experienced a negative currency effect on EBITDA due to the revaluation of accounts receivables and payables as the SEK strengthened by the end of the quarter.