BillerudKorsnäs ( OTCPK:BLRDY ) shares rose around 8% Wednesday after the Swedish packaging materials firm reported record financial performance for Q2, with all-time high sales, EBITDA and operating cash flow.
Net sales grew by 75% to SEK11.41B, while sales (excluding currency effects) rose 72%, mainly due to the acquisition of Verso . Net sales growth, excluding currency effects, the acquisition of Verso and the divestment of Beetham, was 17%.
The company generated net profit of SEK 1.42B, or SEK 6.83 per share. Adjusted EBITDA grew to SEK 2.27B, driven by Verso acquisition, price increases and an improved mix.
CEO Christoph Michalski said in the news release that, "Despite the recessionary threat, the business remains strong both in Europe and North America. In the second quarter, we have seen high demand for all our products and prices have remained strong."
Michalski, however, warns that "The war in Ukraine continues to have an impact on raw material prices and uncertainty in Europe. We are seeing a significant increase in wood cost, while prices for other raw materials are stabilizing at a high level. Logistics within Europe and overseas continue to be a significant challenge, both for transport availability and reliability."
Q3 outlook: Despite macro-economic uncertainty, the business is expected to remain strong for the third quarter. Continued cost inflation for inputs, especially for pulpwood in Europe. Positive price impact and mix improvements expected to offset higher costs.
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BillerudKorsnäs stock rises on back of record Q2 results