Press release
28 Oct 2014, 7:00 CET

Interim report January- September 2014

(Tables included in attached PDF)

Third quarter 2014

  • Net sales increased with 9% and adjusted operating profit increased with 54% compared to the third quarter 2013 due to synergy realisation and more favourable currency exchange rates.
  • Compared to the previous quarter net sales increased 1% and adjusted operating profit increased 11% due to improved exchanged rates and seasonally lower personnel costs.
  • Operating profit was negatively impacted with approximately SEK 227 million by periodic maintenance shutdowns in three of the production units.

January-September 2014 compared with the same period in 2013

  • Net sales has increased 5% due to 4% volume growth and more favourable currency exchange rates.
  • The adjusted operating profit has improved with SEK 441 million primarily due to synergies and a weakened SEK.
  • Synergies of approximately SEK 208 million have impacted the first nine months compared to the same period last year.
  • Net debt/equity ratio has declined from 0.87 to 0.73.


  • Demand and order situation is expected to decline temporarily for business areas Consumer Board and Packaging Paper in the fourth quarter. The decline is due to seasonal variations. Business area Containerboard is expected to stay on the same level as in the third quarter. In addition, December 2014 is an unusually short delivery month.
  • Average prices in local currency are anticipated to be stable.
  • Wood prices are expected to stay on current level for the fourth quarter of 2014.
  • Capital expenditures is estimated to be approximately SEK 1 550 million in 2014, which is SEK 150 million above the depreciation level. The capex level for 2015 will also be above the depreciation level.
  • Full synergies have been reached as of quarter three 2014.

Comments by BillerudKorsnäs’ CEO Per Lindberg:

Continued evidence of strength in third-quarter

“Our performance in the third quarter was very strong and I am pleased to see an adjusted operating margin for the quarter at 10% and an adjusted operating profit level of SEK 518 million. The quarter contained maintenance shutdowns at three of our production units with a negative impact on profits of approximately SEK 227 million. Year on year our net sales has grown 5% and our sales volume has grown 4%. We have reduced our debts significantly thanks to a strong cash flow and our Net debt/equity ratio is now down to 0.73.

In spite of an uncertain global environment, the overall market for packaging materials has been good for all business areas during the quarter with stable prices and demand. Business area Packaging Paper has kept the prices stable and is seeing opportunities to raise prices for some of the segments in speciality kraft papers. Business area Containerboard has, as expected, experienced pressure from the increased market capacity on the liner side which is reflected in lower sales volume but with continued strong margins. Business area Consumer Board shows stability with sales volumes growing better than planned, 5% compared to last year.

After several consecutive quarters with improved performance, we are temporarily seeing some challenges in the fourth quarter. December will be very short from a delivery perspective and business areas Packaging Paper and Consumer Board both anticipates a seasonal volume decrease. Containerboard continues on a lower than normal volume level for liner in the fourth quarter due to increased market capacity.

During the third quarter we have announced investments in line with our asset review and long term strategy. We are growing in accordance with our profitable growth plans, 4% compared to last year. We have now reached our synergy targets well ahead of plan. Even if we now close our synergy program, we will continue our efforts with driving profit improvements in our daily work to improve our efficiency and operational excellence. We see great opportunities to still learn from each other within the organisation and to create value for our customers, shareholders and employees.’’

BillerudKorsnäs’ President and CEO Per Lindberg and CFO Susanne Lithander will present the interim report at a press and analyst conference at 10.00 CET on Tuesday 28 October 2014. Venue: Tändstickspalatset, Västra Trädgårdsgatan 15, Stockholm, Sweden.

For further information, please contact:
Per Lindberg, President and CEO +46 (0)8 553 335 00
Susanne Lithander, CFO, +46 (0)8 553 335 00

The information in this report is such that BillerudKorsnäs AB (publ) is obliged to disclose under the Swedish Securities Market Act and was submitted for publication at 07.00 CET on 28 October 2014. This report has been prepared in both a Swedish and an English version.

BillerudKorsnäs – Packaging manufacturers and brand owners are offered added value in the form of brand-strengthening, productivity-boosting and environment-enhancing packaging solutions. BillerudKorsnäs has a world-leading market position within primary fibre-based packaging paper. The company has annual sales of around SEK 20 billion and is listed on NASDAQ OMX Stockholm.