Finnish firm Ahlstrom's net sales at €705.8 mn in Q3 FY23

Despite the decrease in net sales, Ahlstrom managed to keep its comparable EBITDA nearly steady at €119.2 million, just shy of the €120 million reported in the third quarter of the prior year. This figure represented 16.9 per cent of net sales, compared to 13.8 per cent in the same period last year, indicating a higher profitability margin, the company said in a press release.

Furthermore, the company saw its EBITDA rise to €104.7 million, up from €91.1 million in Q3 FY22. This increase included items affecting comparability, which were lower this year at minus €14.5 million, compared to minus €29 million last year.

The operating result for the quarter also showed improvement, increasing to €61 million from €46.5 million in the corresponding quarter of the previous year. However, the net result presented a contrasting picture, registering a loss of minus €20.4 million, a significant downturn from a profit of €27.1 million in Q3 FY22.

“In the third quarter, we continued our transformation journey to become the leading sustainable specialty materials company. Ahlstrom’s strength lies in our know-how in sustainable and innovative fibre-based solutions. We have the technology that addresses the big trends in the world and with our diversified portfolio we meet the needs of our customers who look for solutions that are safe and sustainable by design,” said Helen Mets, president and CEO.

When looking at the first nine months of fiscal 2023 (Q1-Q3 FY23), the company's performance mirrored similar trends. Net sales saw a decrease of 9.3 per cent to €2,281.2 million, down from €2,514.4 million in the same period last year, primarily due to lower deliveries resulting from destocking activities. Comparable EBITDA for this period declined to €308 million from €357.0 million, representing 13.5 per cent of net sales, as opposed to 14.2 per cent in the previous year. This decline was attributed to the fact that a higher margin on variable costs per ton could not fully compensate for the reduced deliveries.

EBITDA for the nine-month period stood at €263.9 million, slightly below the €265.7 million reported in the same period last year. This included items affecting comparability, which were lower at minus €44.1 million, compared to minus €91.4 million in the prior year, largely due to transformation initiatives. The operating result for this period decreased to €125.9 million, compared to €134.7 million in the previous year. The net result for the first nine months was a loss of minus €43.7 million, a significant shift from a profit of €55.2 million in the same period of the previous fiscal.

Fibre2Fashion News Desk (DP)