Q1 2025 Rottneros AB Earnings Call Transcript

May 15, 2025 / 10:00 AM GMT

Release Date Price: kr5.04 (+0.17%)

Transcript

Key Points

Positve

Rottneros AB (LTS:0H0L) achieved stable production despite a turbulent market environment.
The company is engaged in constructive negotiations with unions to adjust production capacity and reduce costs by 35 to 40 million Swedish Krona annually.
There is a strong demand for UKP and ECF grades, particularly in the European market.
Rottneros AB (LTS:0H0L) has completed significant investments, totaling 460 million Swedish Krona, which are now operational and meeting performance targets.
The company is expanding into the packaging area with new machine lines in Sunna and Poland, enhancing its product offerings.

Negative

Rottneros AB (LTS:0H0L) issued a profit warning due to high raw material costs and pressure on mechanical pulp prices.
The company's EBIT of 62 million Swedish Krona for the quarter was below expectations, impacted by exchange rate losses and rising wood costs.
There is a notable decline in demand for mechanical pulp, particularly in export markets affected by subsidized capacity from China.
Inflation and increased personnel costs are contributing to higher fixed costs, squeezing margins.
Working capital has increased significantly over the last four quarters, driven by higher wood costs and increased stock valuation.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

RROS.ST - Rottneros AB
Q1 2025 Rottneros AB Earnings Call
May 15, 2025 / 10:00AM GMT

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Presentation
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Unidentified_1 [1]
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Hello and welcome to today's webcast with Roten, CEO Leonard Ebele and CFO Monika Passen I will present the report for the first quarter of 2025. After the presentation, there will be a Q&A. So if you have any questions, you can send them in via the form to the right.

And with that said, I hand over the word to you guys.

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Unidentified_2 [2]
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Thank you very much, Ludwig, and hello everybody to this quarter one presentation of 2025.

A stable production in a turbulent world is what we have achieved during the quarter. We're focusing on the things we

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