Financial summary for Q3 FY20 ended June 2020:
- Severe impact from Covid-19 on profitability
- EBITDA excluding special items US$26 million (Q3 2019 US$118 million)
- Loss for the period US$73 million (Q3 2019 Profit of US$8 million)
- Net debt US$1,977 million (Q3 2019 US$1,728 million)
- EBITDA from packaging and specialities segment increases 109%
Sappi announces financial results for third quarter; continues to respond to impact from Covid-19
Commenting on the impact of Covid-19, Sappi Limited Chief Executive Officer, Steve Binnie said: “In response to the impact that the pandemic is having on people’s lives, we have developed a comprehensive Covid-19 action plan where our priority remains the health and safety of our employees and their families. Our mills and other facilities apply stringent guidelines to mitigate the spread of Covid-19. This ensures our operations continue to operate in a safe and uninterrupted manner where demand for our products permit.
During the quarter we continued to focus on the preservation of liquidity and cash flow through cost containment initiatives, a reduction in capital expenditure, delays to major annual maintenance shuts, furloughing of staff where possible and a focus on optimising working capital.
We continue to work closely with our customers and suppliers as we systematically increase activity and output in response to market demand and we support our local communities to mitigate the impact of the pandemic and the ensuing socio-economic consequences.”
Q3 financial results
Turning to the results for the third quarter, he stated: “The overall economic effect of the Covid-19 pandemic and related lockdowns, changes in consumer behaviour and logistical challenges had a severe impact on the business in the quarter.
Previously weak graphic paper and dissolving pulp (DP) markets were further affected by significant declines in demand and lower sales prices. Our packaging and specialities business increased sales volumes during the quarter and has proven resilient in the current difficult economic circumstances. This segment continues to support our strategy to diversify the group’s product portfolio into higher margin and growing segments.”
You can download and view all of the latest financial results below, alongside our 2019 Annual Integrated Report.