Ahlstrom's adjusted EBITDA rises 6.8% in Q1 2016

The improvement in profitability was owing to lower input costs, better pricing, optimisation of product mix and lower cost structure.

Adjusted operating profit increased 25.3 per cent in Q1 2016 to €12.9 million as compared to €10.3 million in the prior year's quarter.

The improvement in profit was despite a fall of 3.19 per cent in net sales to €243.7 million in the first quarter as compared to €251.5 million in the previous quarter.

Commenting on the profitability, Marco Levi, president & CEO of Ahlstrom said, “January-March 2016 marked our tenth consecutive quarter of year-on-year improvement in profitability, with majority of our businesses delivering higher margins.”

“I'm also happy to say that we have delivered our first positive first-quarter operating cash flow in four years (€8.4 million). The improving trend in our financial performance gives us confidence, and we are on track to reach our target of over 8 per cent adjusted operating profit margin by 2018,” he added.

The company expects net sales from continuing operations to be in the range of €950-1,050 million in 2016. Adjusted operating profit from continuing operations is expected to be 4.2-5.2 per cent of net sales.

Slower-than-anticipated economic growth poses risks to Ahlstrom's financial performance. Further swings in currency exchange rates may lead to fluctuations in net sales and profitability. (MCJ)

Fibre2Fashion News Desk - India