Financial summary for Q4 and full FY21 ended September 2021:
- EBITDA excluding special items
- For the quarter US$177 million (Q4 FY20 US$82 million)
- For the year US$532 million (FY20 US$378 million)
- Profit for the period
- For the quarter US$35 million (Q4 FY20 loss of US$88 million)
- For the year US$13 million (FY20 loss of US$135 million)
- EPS excluding special items
- For the quarter 11 US cents (Q4 FY20 loss of 4 US cents)
- For the year 15 US cents (FY20 loss of 5 US cents)
- Net debt US$1,946 million (FY20 US$1,957 million)
Sappi announces strong recovery after COVID-19 impact; releases financial results for the fourth quarter and full year
Commenting on the group’s results, Sappi Chief Executive Officer, Steve Binnie, said: “I am very pleased with Sappi’s strong recovery and our return to profitability for the year. I wish to recognise the dedication and resilience of the Sappi team in turning a loss of US$135 million in 2020 into a profit of US$13 million for 2021, with EBITDA increasing by 40% over the prior year. The team overcame significant challenges posed by COVID-19. The cooperation, cross-regional support and continued focus on our Thrive25 strategy were exemplary.
“Highlights for the year included the recovery in the profitability of the dissolving pulp (DP) segment driven by buoyant demand and significantly better market prices as well as the North American region delivering its highest financial year EBITDA in over a decade. Our strategy of making investments in packaging and speciality papers reaped the rewards as the segment achieved record profitability and sales volumes increased by 21%."
Turning to the financial results for the quarter, Binnie said: “The ongoing recovery from COVID-19 continued in the fourth quarter. High DP prices and an excellent performance by the North American business more than offset escalating raw material costs and ongoing supply chain challenges, which constrained shipments and negatively impacted delivery costs. The South African civil unrest, coupled with supply chain challenges, including a cyber-attack and equipment failure at the Durban port, and adverse weather events, negatively impacted fourth quarter EBITDA. Notwithstanding this, group EBITDA increased by 22% to US$177 million from the US$145 million achieved in the third quarter.”
Looking forward, Binnie stated: “We remain encouraged by the growing resilience of global economies as the COVID-19 pandemic evolves and the corresponding recovery in underlying demand in all of our product segments. However, the supply chain challenges and the extraordinary energy cost inflation may affect profitability. In addition, the maintenance shut at Somerset Mill is scheduled for the first quarter and will impact EBITDA. As a result, we anticipate an improvement in EBITDA in the first quarter of FY22 relative to the fourth quarter of FY21.”
You can download and view all of the latest financial results below, alongside our 2020 Annual Integrated Report.