​Latest financial results

Sappi Limited (JSE: SAP, OTC: SPPJY) released its Q2 FY20 financial results for the period ended March 2020 on Thursday, 07 May 2020, at 09:00 South African time.

Financial summary for Q2 FY20 ended March 2020:

  • EBITDA excluding special items US$131 million (Q2 FY19 US$187 million)
  • Profit for the period US$2 million (Q2 FY19 US$72 million)
  • EPS excluding special items 4 US cents (Q2 FY19 13 US cents)
  • Net debt US$1,879 million (Q2 FY19 US$1,680 million)

 

Sappi announces financial results for second quarter; responds to impact from Covid-19

Covid-19

Commenting on the impact of Covid-19, Sappi Chief Executive Officer, Steve Binnie said: “The impact of Covid-19 on people, business and society has been severe. Sappi’s approach to the outbreak of Covid-19 is guided by our values and purpose. Our priority remains the safety of our people across all of the territories where they are present. This ensures that our operations continue in a safe and uninterrupted manner. We remain in close contact with our customers and suppliers as we try to minimise any negative impacts within government constraints, helping local economies to mitigate the negative economic consequences of the various measures imposed. We also assist with efforts to help mitigate the impact of the virus on local communities. I am proud of the Sappi team around the world who are living our values, being innovative and taking initiative to help our stakeholders. We understand that overcoming the impact of Covid-19 and returning to normal business operations will require significant time and effort, for which we are preparing.”

Turning to the impact of Covid-19 on the second quarter, he continued: “Covid-19 had a relatively small impact on profitability during the quarter. However, an anticipated improvement in dissolving pulp (DP) prices did not materialise, principally as a result of the outbreak of Covid-19 in China. The subsequent actions taken by various governments only directly impacted our operations during the last few weeks of the quarter, and there was minimal disruption to production, although the Condino Mill in Italy was temporarily shut. We began to receive significant cancellations of DP and graphic paper orders scheduled to be delivered in the third quarter, and new orders for both product categories slowed considerably.”

Q2 financial results

Commenting on the quarter’s result, Binnie said: “I am very pleased with the strong packaging and specialities performance which saw EBITDA contribution almost double. I am also pleased with the solid results in the graphics paper segment, as well as the significant increase in market share across both segments. Despite these strong performances, the results were negatively impacted due to the historic low dissolving pulp (DP) prices, and reduced DP sales volumes.”

You can download and view all of the latest financial results below, alongside our 2019 Annual Integrated Report.

Q2 FY20 Financial results booklet (Interactive)
Click the link above to browse the interactive version of our Q2 FY20 financial results booklet.
Conference call dial-in details
Find dial-in numbers and registration link for the conference call hosted by our CEO, Steve Binnie.
2019 Sappi Annual Integrated Report (Interactive)
Click the link above to browse the interactive version of our 2019 Sappi Annual Integrated Report.
The need to develop more environmentally friendly solutions, derived from renewable materials, will drive increasing market share for viscose, which is derived from dissolving wood pulp.
Steve Binnie, Chief Executive Officer of Sappi Limited
Contact
Graeme Wild
Group Head Investor Relations
Sappi Limited (Reg no 1936/008963/06)
108 Oxford road
Rosebank, Johannesburg, 2132
South Africa
Tel:
+27 11 407 8391
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Read our 2019 annual reports to find out about a year in which we have made good progress towards improving profitability, cash generation and growth.
View Sappi’s quarterly financial statements, formatted as webcasts, presentations, booklets and debt updates.

Sappi makes regular filings to the US Securities and Exchange Commission, all of which can be found in this feed.