Q2 2024 Billerud AB (publ) Earnings Call Transcript
Key Points
- Billerud AB (BLRDF) reported an 8% increase in net sales compared to last year, driven by volume and mix improvements.
- The company successfully improved its underlying profit both year-over-year and quarter-over-quarter, offsetting input cost inflation through proactive price management.
- Region North America delivered an 18% EBITDA margin despite operating below 70% capacity, showcasing strong profitability.
- Cash conversion was close to 80%, demonstrating effective working capital discipline.
- The efficiency enhancement program contributed SEK190 million in the quarter, with a target of SEK700 million for 2024 on track.
- There is uncertainty about the strength of underlying demand, with market conditions varying by category.
- Input cost inflation, particularly in Europe, remains a significant challenge, with expected additional cost headwinds of SEK180 million in Q3.
- The pulpwood costs in the Nordics reached all-time high levels, significantly impacting profitability.
- The company faces a tight market situation for pulpwood, with continued cost increases expected in Q3.
- Despite improvements, the company is still operating below full capacity in North America, indicating potential inefficiencies.
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Good morning, and thank you for joining this conference. The presentation of Billerud second quarter result will be conducted by our President and CEO, Ivar Vatne; and our CFO, Andrei Krés (Operator Instructions)
And with that, I hand over to Ivar.
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Thank you, Lana. And good morning, everyone, and thanks for joining in on this beautiful summer day. Please turn Stockholm. To be excited to walk you through some of the highlights of our Q2, which has been a quarter with some very clear positive.
So let's get into the next slide, please. We back to net sales growth and we see this growth coming broad-based across most categories in both regions. It is encouraging to see after fighting market headwind for some time.
Another clear highlight is how we've been able to successfully improve our underlying profit. Both
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