Ahlstrom-Munksjö Decor enjoys stronger demand

28.02.2020 − 

Ahlstrom-Munksjö has announced that its Decor division experienced a recovery in demand for decor paper in the fourth quarter following a longer downturn caused by the economic downswing and inventory reductions along the entire value chain. However, this recovery has yet to be reflected in its financials. The division’s revenues dropped 9.6% compared with the previous year’s relatively good level to €104.1m in the fourth quarter. Revenues thus ended up roughly the same as in the second quarter (€104.8m) but were just shy of the €100m mark in the third quarter at €99.9m. The first quarter had been much stronger with revenues of €113.3m. Ahlstrom-Munksjö continues to blame a slump in sales volumes and prices for the downward trend in revenues that emerged during the course of the year.

Adjusted EBITDA tumbled even more than revenues, diving 27.0% to €8.4m in the fourth quarter and trimming the margin to 8.0%. Adjusted EBITDA and the resulting margin had been even worse in the first (€7.0m, 6.2%) and third (€5.8m, 5.9%) quarters.

The Decor division experienced a 6.6% decline in revenues to €422.1m in the 2019 financial year. Adjusted EBITDA worsened to €29.9m, with the margin deteriorating to 7.1%. One of the main reasons was an increase in fixed costs caused by lower sales and output, which more than made up for relief from dwindling raw material costs.

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