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Third party research

Arctic Paper: Challenges continue - ABG

Arctic Paper

This is a third party research report and does not necessarily reflect our views or values

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Q2 challenging, same trends expected for Q3
Paper — better demand, more supply cuts, higher prices
Fair value range of SEK 40-80


Q2 challenging, same trends expected for Q3

Q2 was another challenging quarter, as group EBITDA came in at PLN 71m (ABGSCe PLN 90m). Paper EBITDA was PLN 45m (ABGSCe PLN 59m). The miss was mainly driven by higher costs and slower-than-expected demand recovery. Note that Rottneros's weak report also weighed on the result. Paper EBIT was PLN 27m (ABGSCe PLN 38m), while group EBIT came in at PLN 42m (ABGSCe PLN 58m). The CEO stated that the recovery may take time and that they “expect the current market situation to persist in Q3”. We expect Q3 Paper EBIT of ~PLN 45m, driven by slightly higher prices. Arctic Paper also announced a modernisation programme for its paper sales and customer service organisation, which will provide annual savings of PLN 15m (full effect '25).
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