Demand for graphic paper used in the media indstry, has declined
Major paper producer Sappi s share price took a beating on Thursday after its second quarter results were released.
Sappi CEO Steve Binnie said the quarter to June 2020 as the worst Sappi has experienced but he explained that the company has been recovering with each quarter since then.
In the upcoming quarters, Sappi will begin seeing the impact of the current Chinese market price increase for dissolving pulp, from $340 per ton to $1 066 per ton, the highest level since May 2012.
Paper producer Sappi s share price fell more than 6% on Thursday after the release of its second quarter results, which showed the devastating impact of Covid-19 on its performance.
MONEYWEB
app instead?
Sappi share price drops after reporting R570m HY loss
Q2 results. A major headache has been the scarcity of shipping space and containers, increasing overall costs as well as delays in delivery of product: CEO Steve Binnie. 19:41
NOMPU SIZIBA: Paper specialist producer Sappi released its second-quarter results today, May 5, 2021. For the three months ended March 2021 it reported overall sales revenue down 2% at US$1.3 billion, with earnings before interest, tax, depreciation and amortisation down 15% at $112 million. The company also reported that its earnings per share, excluding special items for the quarter, was at a loss of 1¢, down from earnings per share of 4¢ in the first quarter â that being the quarter of October through to December, 2020.
Sappi continues recovery in results for second financial quarter 2021
News provided by
Share this article
Share this article
JOHANNESBURG, May 6, 2021 /PRNewswire/ Commenting on the group s results, Sappi Chief Executive Officer Steve Binnie said: I am pleased with the steady recovery from the ongoing challenges of the Covid-19 pandemic. EBITDA continued to improve quarter-on-quarter from a low of US$26m in our third quarter of 2020 through US$98m in the previous quarter to US$112 for the current quarter, with further improvement expected for our third quarter.
He continued: The North American and South African regions recorded strong improvements in profitability. This was in contrast to Europe where extended lockdowns and restrictions on economic activity hindered the performance. Covid-19 also severely affected global shipping and container availability, which impacted sales volumes in a number of product categories.
Grain, grain, go away, come again another way agweek.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from agweek.com Daily Mail and Mail on Sunday newspapers.