Borregaard’s adjusted earnings before interest, tax, depreciation and amortization (EBITA adj.) for the first quarter of 2019 were NOK 157 million, down from NOK 177 million for the corresponding period of last year. However, Borregaard’s operating revenues increased to NOK 1 250 million, up from NOK 1 217 million for the first quarter of 2018.
The result of Borregaard’s ‘Other Businesses’ (ingredients, fine chemicals and cellulose fibrils) improved significantly compared with the corresponding quarter in 2018, whereas performance chemicals and speciality cellulose had a decline. The implementation of IFRS16 Leases had a marginal positive impact of NOK 1 million on EBITA adj.
- Performance chemicals had a 7% increase in total sales volume, primarily as a result of the Florida plant ramp-up.
- EBITA adj. decreased, mainly due to higher fixed costs and depreciation from the Florida start-up.
- Higher wood costs and low deliveries affected speciality cellulose negatively.
- ‘Other Businesses’ improved as a result of higher sales prices and a favourable product mix in ingredients, as well as high sales revenues in Fine Chemicals.
- The net currency impact was positive.
First quarter 2019 profit before tax was NOK 141 million, down from NOK 169 million in the corresponding period of 2018. Earnings per share were also down on the preceding year at NOK 1.26, compared to NOK 1.37 for first quarter 2018.
Read the article online at: https://www.worldfertilizer.com/project-news/10052019/borregaards-announces-first-quarter-results-for-2019/