Nordic Paper Holding AB — Q4 2024 Earnings Presentation
18 slides from Nordic Paper Holding AB's earnings presentation, Jan 30, 2025
Slide 1: Double digit growth in net sales and EBITDA
Double digit growth in net sales and EBITDA Nordic Paper year-end report 2024 Anita Sjölander, CEO Niclas Eriksson, CFO Henrik Essén, Head of IR
Slide 2: Double digit growth in net sales and EBITDA
Double digit growth in net sales and EBITDA • Overall demand remained healthy in the quarter and net sales increased by 17% to SEK 1,134m (971m). • Very strong sales development in Natural Greaseproof with a new net sales record. • Sales prices were stable from the previous quarter, 6% higher than Q
Slide 3: Double digit growth for net sales and EBITDA while margin decreased slightly
Double digit growth for net sales and EBITDA while margin decreased slightly SEK SEK 1400 971 m 1,134 25 m 1200 20 1000 ✓ Net sales SEK 1,134m (+17%) 800 15 ✓ EBITDA SEK 189m (+12%) 600 10 ✓ EBITDA margin 16.7% (-0,8 p.p.) 400 5 200 0 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2023 2024 Net sales, SEKm EBITDA margin
Slide 4: Slight increase in sales volumes from weak Q4 2023
Slight increase in sales volumes from weak Q4 2023 ktonnes +1% 90 80 70 60 50 40 30 20 10 0 Q1 2023 Q2 Q3 Q4 Q1 2024 Q2 Q3 Q4
Slide 5: Kraft Paper impacted by slow ramp-up of Bäckhammar
Kraft Paper impacted by slow ramp-up of Bäckhammar Kraft Paper net sales and EBITDA margin SEKm % 800 40 700 35 ✓ Net sales SEK 490m, an increase by 4% compared to Q4 2023. 600 30 500 25 ✓ Sales volumes decreased 6% due to slow ramp-up of production in Bäckhammar after 400 20 maintenance stop Q3 202
Slide 6: Natural Greaseproof excels
Natural Greaseproof excels Natural Greaseproof net sales and EBITDA margin SEKm % 800 40 ✓ Net sales increased by 30% to SEK 658m, a 700 35 new quarterly record. 600 30 ✓ Sales prices 7% up compared to Q4 2023 and 500 25 sales volumes increased by 20%. 400 20 ✓ In total slight negative impact on EBI
Slide 7: New EU regulation benefit for natural greaseproof papers
New EU regulation benefit for natural greaseproof papers • The EU Packaging and Packaging Waste Regulation was adopted in December 2024. • The adopted regulation contains restrictions to place on the market food contact packaging containing PFAS above certain thresholds. • Nordic Paper does not add
Slide 8: Key highlights full year 2024
Key highlights full year 2024 • Market improved in Q1 and remained strong until Q3. In the end of Q3 some weakening in certain segments of the kraft paper business started. • Net sales increased by 4% to a new annual record of SEK 4,668m (4,472m). • Full year EBITDA SEK 806m (775m), EBITDA-margin 17
Slide 9: Q4 – Strong performance in Natural Greaseproof drives volume impact on net sales
Q4 – Strong performance in Natural Greaseproof drives volume impact on net sales Net sales bridge Q4 2024 SEKm 56 6 1 134 101 971 Net sales Volume and Price Currency Net sales Q4 2023 product mix Q4 2024
Slide 10: Q4 - Higher volumes and sales prices more than offset higher costs
Q4 - Higher volumes and sales prices more than offset higher costs SEKm EBITDA bridge Q4 2024 56 112 -107 5 189 170 -37 -9 EBITDA Volume and Price Variable costs Fixed costs Currency Other EBITDA Q4 2023 product mix Q4 2024
Slide 11: Full year 2024 - Higher volumes more than offset lower product prices
Full year 2024 - Higher volumes more than offset lower product prices Net sales bridge full year 2024 SEKm 396 6 4 668 4 472 -206 Net sales Volume and Price Currency Net sales 2023 product mix 2024
Slide 12: Full year 2024 – strong volumes offset impact from lower sales prices
Full year 2024 – strong volumes offset impact from lower sales prices SEKm EBITDA bridge 2024 220 43 76 0 806 775 -206 -102 EBITDA Volume and Price Variable costs Fixed costs Currency Other EBITDA 2023 product mix 2024
Slide 13: Stable working capital as percentage of net sales; growing business consumes cash
Stable working capital as percentage of net sales Growing business consumes cash Working capital Cash flow from operating activities SEKm % SEKm SEKm 12m 750 15 400 800 600 14 300 600 450 13 200 400 300 12 100 200 150 11 0 0 0 10 -100 -200 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2023 2024 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 20
Slide 14: Bäckhammar investment proceeding according to plan
Bäckhammar investment proceeding according to plan SEKm Investments 250 200 150 100 50 0 Q1 2023 Q2 Q3 Q4 Q1 2024 Q2 Q3 Q4 Bäckhammar investments in Other investments wood room and electrostatic filter • The ongoing Bäckhammar investments are expected to add SEK 100m to EBITDA with full effect from
Slide 15: Stable financial position
Stable financial position SEKm 1400 4,5 4 1200 ✓ Net debt increased to SEK 1,197m (751m) 3,5 1000 impacted by investments in Bäckhammar. 3 800 2,5 ✓ Net debt/EBITDA 1.5 (1.0) 600 2 1,5 400 1 200 0,5 0 0 Q1 2023 Q2 Q3 Q4 Q1 2024 Q2 Q3 Q4 Net debt, SEKm Net debt/EBITDA 12 m
Slide 16: Outlook
Outlook The company assesses that • demand for Nordic Paper products in Q1 will be unchanged from Q4, with healthy demand in Natural Greaseproof and somewhat softer demand in Kraft Paper. • sales volumes will be stronger in Q1 compared to Q4. • there will be some downward pressure on sales prices in
Slide 17: Q&A
Q&A
Slide 18: Summary
Summary • Net sales up 17% to SEK 1,134m (971m) after very strong sales development in Natural Greaseproof. • EBITDA at SEK 189m (170m), corresponding to a margin of 16.7% (17.5%). The company assesses that • demand for Nordic Paper products in Q1 will be unchanged from Q4. • there will be some down