Arctic Paper S.A. (ARP) Q1 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Hello and welcome to today's webcast with Arctic Paper, where CEO Michael Jarczynski and CFO Katarina Wojtkowska will present a report for the first quarter of 2025. After the presentation, there will be a Q&A, so if you have any questions to Arctic, you can send them in via the form to the right. And with that said, I hand over the word to you guys. Hello everyone, welcome to this Friday morning presentation of Arctic Paper financial results for first quarter 2025. Together with CEO Michał Jopczyński, we will present this to you. Starting with a summary of Q1 2025 results, if we compare them to the same quarter of 2024, we can see that there was some decrease in our net sales. It had two main, it had a bit different reasons in our both segments. In the paper segment, the biggest impact was the lower volume of salt paper and also just a slightly bit lower paper price. On the side of pulp, the main reason was lower volume salt. On the EBITDA side, we also noticed significant decrease of our results and it had some influence also from the paper segment, which was mostly, as mentioned before, lower volume and a bit lower price. Whereas on the pulp segment side, the main reason was very high cost of wood. So raw materials on one hand and on the other hand also the strengthening of Swedish krona against both US dollar and also euro had some impact on the results. The group's net debt to BTA ratio is still on a safe level, even though it has increased somehow due to more use of our overdraft facilities, but it still remains on relatively low level, which indicates the good financial position of the group. Let's go to the characterization of each of our segments. Next, please. Q1 was quite stable and unfortunately not in the favor of the pulp and paper producers. The demand...