Arctic Paper S.A. (ARP) Q2 2024 Earnings Call

Investor webinar replay

Replay transcript excerpt

hello and welcome to today's webcast where arctic paper will present the report for the second quarter of 2024. after the presentation there will be a q a so if you have any questions you can send them in via the form to the right and with that said i hand over the word to you guys hello good afternoon we would like to present together with katarzyna boykova who is the cfo of the whole group and me michael archinski the result of the q2 2024. We'll start with a short summary of Q2 results and the revenue sales revenues in Q2 24 were similar as in Q2 23 but the mix is a little bit different so we have a bigger paper sales volume with a little bit lower price denominated in denominated in Polish zlotys, whereas we have a similar volume of pop sales with a slightly higher price. We could see in Q2 some slowdown in the economy, which was of course generated by the general macroeconomic situation in Europe, especially on the German market, which is one of the biggest market for our sales. In terms of EBITDA, it was on a similar level as in Q2 23, a little bit higher if we consider the one of events. And also the split of EBITDA between our pulp and paper segments was similar with a little bit higher EBITDA of the pulp segment. Lower operating cash flow in Q2 had two major causes. First of them was the lower gross profit and also there were negative influence of the changes in foreign exchange differences. The net debt to EBITDA level is safe on a very low level. If we jump to the summary of half year, 2024, the net sales was a little bit lower if we compare it to the half year of 2024, whereas the volume was higher both in the paper and pulp segments, but we noticed the lower paper prices and a little bit higher pulp prices, which, as I mentioned before, was influenced by...