Release Date: July 18, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Region North America recorded an impressive 22% EBITDA margin, the highest since the end of 2022.
- Billerud AB (BLRDF, Financial) achieved a significant milestone in North America with 1,000 tons of new packaging materials, showing strong customer interest.
- The company reported excellent cash generation, with cash flow from activities growing by 75% compared to the previous year.
- Billerud AB (BLRDF) maintained strong cost discipline, limiting cost inflation despite significant pressures.
- The company achieved a cash conversion rate of 131% for the second quarter, supporting a strong balance sheet.
Negative Points
- Region Europe faced challenging market conditions with weak demand and supply overcapacity, leading to a decline in sales.
- Sales declined by 5% due to FX headwinds, with the strengthening of the Swedish krona impacting results.
- The company experienced a negative year-over-year effect from inventory revaluation, impacting financial results.
- Market conditions in Europe are expected to remain weak, with no improvement anticipated going into Q3.
- The company faces pricing pressure in Europe, particularly within Containerboard and Cartonboard, due to weaker market conditions.
Q & A Highlights
Q: Can you provide details on the recent price reductions in Nordic wood prices and whether this is a temporary relief or a longer-term trend?
A: We have seen a decrease in prices in the Baltics and Norway, with a reduction of 5% to 10% from list prices. This is due to good availability, and we expect a positive cost impact of SEK40 million to SEK50 million, although not much will be realized in Q3. (Andrei Kres, CFO)
Q: Regarding North America, are customers interested in long-term contracts for domestically produced products, or is this a temporary workaround?
A: While it's challenging to secure long-term commitments, the qualification process suggests a long-term interest. We expect this to lead to more significant figures going into 2026. (Ivar Vatne, CEO)
Q: How are you managing production curtailments across your mills in Europe, and are other producers also taking similar actions?
A: We are managing curtailments on a weekly basis, with no machines fully offline. The paper side performed better than the board side. This is a common theme across the industry, with many companies taking similar actions. (Ivar Vatne, CEO)
Q: Can you explain the delay in CapEx for North America and the reason for the reduced full-year CapEx guidance?
A: The SEK400 million reduction is due to a deliberate choice to align investments with maintenance shutdowns, particularly in the Escanaba mill, to optimize the evolution project timeline. (Andrei Kres, CFO)
Q: What is your outlook on pricing and market conditions in Europe for the third quarter?
A: We expect weaker market conditions to persist, with some pricing pressure, particularly in Containerboard and Cartonboard. Our goal is to defend our pricing positions despite the challenges. (Andrei Kres, CFO)
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
