Press release
3 Feb 2015, 7:00 CET

Year-end report January- December 2014

(Tables included in attached PDF)

Fourth quarter 2014

  • Net sales increased with 8% and operating profit doubled compared to the fourth quarter 2013 due to synergy realisation and more favourable currency exchange rates.
  • Compared to the previous quarter net sales decreased 1% due to seasonally lower demand. Operating profit increased 2% primarily due to improved exchange rates.
  • Operating profit was negatively impacted with approximately SEK 135 million by periodic maintenance shutdowns in the production unit in Gävle.
  • Operating cash flow improved from SEK 148 million to SEK 427 million compared to the same period previous year.

Full year 2014 compared with the same period in 2013

  • Net sales has increased 6% due to volume growth and more favourable currency exchange rates.
  • The adjusted operating profit reached SEK 2 000 million primarily due to synergies and a weakened SEK.
  • Volumes for the year reached an all-time-high of approximately 2 700 ktonnes.
  • Synergies of approximately SEK 250 million have impacted the year compared to previous year.
  • Net debt/equity ratio has declined from 0.85 to 0.67.
  • Working capital level has been lowered with SEK 462 million, partly due to focused efforts in the working capital program.

Proposed dividend

  • The Board of Directors proposes a dividend of SEK 3.15 per share for 2014.


  • Demand and order situation for the first quarter 2015 is expected to seasonally improve compared to the fourth quarter 2014.
  • Average prices in local currency are in general anticipated to be stable. Within Packaging Paper we see price and volume uncertainties in selected kraft paper segments. Prices and volumes for white liner continue to remain under pressure.
  • Wood prices are expected to stay on current level for the first quarter of 2015.
  • Capital expenditure is estimated to be approximately SEK 1 700 million in 2015.


Comments by BillerudKorsnäs’ CEO Per Lindberg:
Stable fourth quarter ends a strong 2014

“We end the year with another stable quarter. The operating profit level of SEK 460 million is good considering the short delivery month of December and some unexpected hick-ups in the production, of course helped by the weakened SEK. During 2014 we reached all time high volumes, in line with our growth plans. We are starting to see that our efforts to reduce working capital are paying off and we have a working capital level that has decreased substantially in spite of increased net sales. Our net debt/equity ratio is down to 0.67.

The overall market for our business has been stable but as expected a bit slow. We did not run full capacity for Packaging Paper due to seasonally lower demand during the fourth quarter. Containerboard market remained under pressure on the liner side due to the increased capacity on the market. The Consumer Board market was stable.

During the quarter we have announced investments in the production unit in Skärblacka that support Packaging Paper in their selective growth strategy. The investment of SEK 260 million will increase quality and volume of brown sack paper where we see good growth potentials.

Finally to sum up the year, we have delivered what we have promised. We reached our synergy targets ahead of plan. We are on track to reach our growth targets. We have developed a strong and stable platform for the future and I believe we have proven the brilliance in merging the two companies.’’

BillerudKorsnäs’ President and CEO Per Lindberg and CFO Susanne Lithander will present the year-end report at a press and analyst conference at 10.00 CET on Tuesday 3 February 2015.
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 3 February 2015. 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.