2024-02-07 14:04:09 ET
Sappi Limited (SPPJY)
Q1 2024 Results Conference Call
February 7, 2024 09:00 AM ET
Company Participants
Steve Binnie - Chief Executive Officer
Marco Eikelenboom - Chief Executive Officer-European operations
Mike Haws - President and Chief Executive Officer-Sappi North America
Alex van Coller Thiel - Chief Executive Officer-Sappi Southern Africa Ltd.
Glen Pearce - CFO and Executive Director
Conference Call Participants
James Twyman - Prescient
Sean Ungerer - Chronux Research
Brent Madel - Absa CIB
Brian Morgan - RMB Morgan Stanley
Andrew Jones - UBS
Presentation
Operator
Good day, and thank you for standing by. Welcome to the Financial Results Announcement Q1 2024 Webcast and Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.
I would now like to turn the conference over to your speaker today, Steve Binnie. Please go ahead.
Steve Binnie
Thank you. Good day, everybody. Thanks for joining. As always, I'll move through the investor presentation calling out the page numbers as we move, and I'm going to start on Page 3, which has some of the highlights for the quarter.
Firstly, our EBITDA was $156 million, which was in line with our guidance that we gave at the end of the last quarter. Overall, we were satisfied with those results against the challenging global macroeconomic environment. We did see gradual recovery across our segments. Graphic paper volumes were higher quarter-on-quarter. But obviously, to point out to you that we did have some big shuts -- scheduled shuts, and those were successful for us. But naturally, there were lower volumes as of that, and it impacted our profits by $45 million because of the lower volume.
For the first time, we've included forestry fair value adjustment in our EBITDA. That's something that we took a decision because we regard forestry as an integral part of business. Obviously, the forest -- the timber is sold into our operations, -- and because of the adjustment to the forestry valuation, it was pushing up the cost, and we felt it was appropriate to reflect the fair value adjustment to offset that higher internal costs....
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Sappi Limited (SPPJY) Q1 2024 Earnings Call Transcript