Lecta publishes its Q1 2019 results
For the first quarter ended 31 March 2019 Lecta had revenue of €388.9 million (+3.6% vs Q1 2018)
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INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Jan to Mar 2019 (i n EUR K)
For the first quarter ended 31 March 2019, Lecta had revenue of €388.9 million versus €375.4 million in the first quarter ended 31 March 2018, an in crease of €13.5 million or +3.6%.
This increase was attributable to higher sales of CWF, Specialties and Purchased Products of €+3.6 million or +1%, from €356.0 million in 1Q2018 to €359.6 million in 1Q2019, resulting from lower sales volumes of 31,900 metric tons or -8.3%, 354,800 metric tons in 1Q2019 vs 386,700 metric tons in 1Q2018, but an increase in average net sales price of +93€/t or +10%, 1,014€/t in 1Q2019 vs 921€/t in 1Q2018; and higher sales of energy.
The definition of products and services is:
Lecta Group is engaged in the production and sale of Coated Woodfree (CWF) and Specialty papers. Lecta Group has production sites in France, Italy and Spain and sells all around the world.
It employed circa 3,162 FTE people in the quarter ended 31 March 2019.
The parent company of the Lecta Group is Lecta SA, a limited company incorporated and domiciled in the Grand Duchy of Luxembourg.
Lecta Group as at 31 March 2019. Organization Chart
EVENTS AFTER THE STATEMENT OF FINANCIAL POSITION DATE
Lecta has announced the temporary shutdown of Line 8 production at its Condat’s mill from the end of April. The decision will be reevaluated in the following months depending on market developments.
The decrease in CWF demand over the last several years resulted in overcapacity in the industry. The worsening of this trend observed in the last months is the main reason for the temporary Line 8 shutdown at the Condat’s mill.
The Condat’s brand product range and service levels during this period are guaranteed due to efficiency improvements and streamlining on Condat’s Line 4 as well as through the contribution of the Group's other CWF paper mills.
Despite the temporary shutdown, meeting the overall demand of Lecta's CWF customers is assured, given the Group's total production capacity of more than 850,000 tons per year.
At the same time, Lecta continues working on a strategic transformation plan that will allow Condat to move forward with greater chances of success, although this project needs further definition over the next few months.
This plan would entail the transformation of production Line 8 from manufacturing two-side CWF to manufacturing specialty papers for labels and flexible packaging, a market in which Lecta has extensive experience given its manufacturing operations in Spain and business operations worldwide.
31 March 2019
31 March 2019