Nordic Paper (NPAPER) Q1 2025 earnings summary

Executive summary

• Net sales rose 6% year-over-year to SEK 1,277 million, driven by higher prices and stable demand, despite a 4% drop in sales volume.

• EBITDA remained flat at SEK 231 million, with margin at 18.1% (down from 19.1%).

• Strategic Value Partners became the new main owner after acquiring shares and completed a public cash offer, installing a new board in January 2025.

• Net profit increased 12% to SEK 167 million, with EPS at SEK 2.49.

• Management maintained focus on operations amid ownership changes and global trade turbulence, particularly regarding U.S. tariffs.

Financial highlights

• Net sales increased 6% year-over-year to SEK 1,277 million, mainly due to higher product prices and a positive product mix.

• EBITDA was unchanged at SEK 231 million, with the margin slightly down to 18.1%.

• Operating profit was SEK 190 million (down from SEK 194 million), with a margin of 14.9%.

• Cash flow from operating activities improved to SEK 90 million from SEK -87 million in Q1 2024.

• The Board removed the dividend policy and proposed no dividend, but may consider an extraordinary dividend later in 2025.

Outlook and guidance

• Demand for specialty papers is expected to remain healthy in Q2 2025.

• Kraft Paper segment prices will increase slightly in Q2, while Natural Greaseproof prices are expected to remain stable.

• Pulp wood and raw material prices are showing signs of short-term stabilization.

• Environmental investments of up to SEK 450 million approved for Bäckhammar, unlocking future production increases.

• Board may consider an extraordinary dividend later in 2025 after long-term financing is secured.