In This Article:
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Net Sales Growth: 7% year-over-year.
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EBITDA Growth: 42% year-over-year.
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EBITDA Margin: Increased by 2 percentage points.
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Region North America Sales Growth: 15% year-over-year.
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Region North America EBITDA Margin: 21%.
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Region Europe EBITDA Margin: 15%, up by 4 percentage points.
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Region North America Volume Growth: 14% year-over-year.
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Cash Conversion: Improved to 41% for the quarter.
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Return on Capital Employed: 7%, up from 1% last year.
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Maintenance Cost Impact for Q2: Expected to be SEK380 million.
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Capital Investment Program: SEK1.4 billion in North America.
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Planned Investments for 2025: SEK3.5 billion, with one-third for strategic investments.
Release Date: April 29, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Billerud AB (FRA:BNF) reported a 7% net sales growth year-over-year, with positive contributions from both regions and almost all categories.
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The company achieved a significant profitability improvement, with EBITDA up 42% and a margin uplift of 2 percentage points.
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Region North America showed strong performance with a 21% EBITDA margin and 15% sales growth.
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Region Europe also improved profitability, achieving a 15% EBITDA margin, up 4 percentage points from the previous year.
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Billerud AB (FRA:BNF) reached a milestone by selling its first batch of locally produced container board in the US, indicating progress in its strategic objectives.
Negative Points
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The carton board and consumer luxury channel in Europe is still performing weaker with slower demand and excess capacity.
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The company faces uncertainty regarding tariffs and their long-term financial impact, which could alter trade flows and competitive dynamics.
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Input costs increased, primarily driven by pulpwood costs in the Nordics, and the strengthening of the Swedish krona posed a headwind.
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Region Europe experienced a decline in liquid packaging board volumes due to high inventory levels in Asia and slower demand.
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The company anticipates a heavy maintenance shutdown in Q2, with a cost impact of approximately SEK380 million, compared to SEK40 million in Q1.
Q & A Highlights
Q: In North America, are customers bringing forward orders, or is demand expected to sustain into Q2 and the rest of 2025? Also, what is causing the relative weakness in carton board and coated liner in Europe? A: (Ivar Vatne, CEO) In North America, Q2 looks solid with good order books, and we have no signs of inventory buildup. However, consumer sentiment in the US has dropped, increasing uncertainty. In Europe, the weakness in carton board is due to our exposure to the premium side, which is sensitive to consumer uncertainty, and there is a lot of available capacity in the market.