Arctic Paper's Q3 net loss widens to 15.3M Polish zloty from net loss of 1.5M zloty a year ago, despite 15.2% year-over-year rise in net sales, to 784M zloty; company is working to develop new products, introduced one for packaging market in October

POSNAN, Poland , November 14, 2013 (press release) – Arctic Paper S.A. generated revenue through the first three quarters of 2013 of almost PLN 2.4bn and EBITDA of PLN 59.3m. The group recorded a loss at the operating level of PLN 35.3m and a net loss of PLN 59.2m (results not reflecting the impairment of non-financial assets of AP Grycksbo).

Results weaker than those achieved during the same period of 2012 were primarily due to weakening of demand for high-quality graphic paper in Europe, leading to a decline in prices, as well as unfavourable exchange rate differences, particularly the strength of Swedish krona against the euro and the U.S. dollar.

The operating result for the first three quarters was –PLN 101.9m and the net result –PLN 113.2m. The write-down for impairment of non- financial assets of AP Grycksbo made on 30 June 2013 in the amount of PLN 66.6m, do not affect the cash flow of the group.

During the first 9 months of 2013, demand for high-quality graphic paper in Europe was down 6.8%. Arctic Paper lost only 4.2% of its sales volume, thus continuing to increase its market share in Europe as a whole.

In the late summer Arctic Paper implemented a profit improvement and cost cutting plan, aiming to improve the result with PLN 75 m. The first cost-cutting effects are already visible. The company anticipates significant improvement in this respect in 2014.

The group is expanding its product portfolio in order to stimulate sales despite the weaker demand on the market. In the next 6 months it intends to launch new products at four paper mills. The product portfolio is already expanded at the Grycksbo paper mill by launching new products for the packaging industry.


FINANCIAL RESULTS – DETAILS

Selected quarterly financial results of the Arctic Paper Group are presented in the table below: 


PLN ’000

3Q 2013

3Q 2012

Change (A/B)

Sales revenue

784,000

680,723

+15.2%

Operating profit (loss)

(7,046)

10,501

n/a

EBITDA

23,549

41,845

-43.7%

Net profit (loss)

(15,291)

(1,483)

n/a 

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