FIRST QUARTER
RESULTS

Sappi is a global diversified woodfibre company focused on providing dissolving wood pulp, packaging and speciality papers, printing and writing papers as well as biomaterials and biochemicals to our direct and indirect customer base across more than 150 countries.

FIRST QUARTER
Financial results conference call
WEBCAST

Our dissolving wood pulp products are used worldwide mainly by converters to create viscose fibre for fashionable clothing and textiles, as well as other consumer products; quality packaging and speciality papers are used in the manufacture of such products as soup sachets, luxury carry bags, cosmetic and confectionery packaging, boxes for agricultural products for export, tissue wadding for household tissue products and casting release papers used by suppliers to the fashion, textiles, automobile and household industries; our market-leading range of graphic papers are used by printers in the production of books, brochures, magazines, catalogues, direct mail and many other print applications; biomaterials include nanocellulose, fibre composites and lignosulphonate; biochemicals include second generation sugars.

The wood and pulp needed for our products are either produced within Sappi or bought from accredited suppliers. Sappi sells almost as much as it buys.

Sales by source* (%)

Sales by destination* (%)

Sales by product* (%)

Net operating assets** (%)

* For the period ended December 2019.
** As at December 2019.


HIGHLIGHTS
FOR THE QUARTER
EBITDA excluding special items US$139 million (Q1 2019 US$197 million)
EPS excluding special items 6 US cents (Q1 2019 16 US cents)
Profit for the period US$24 million (Q1 2019 US$81 million)
Net debt US$1,916 million (Q1 2019 US$1,557 million)

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COMMENTARY
ON THE QUARTER

A good performance from the European and North American packaging and specialities segment and satisfactory results from the graphic paper businesses were not enough to offset the significant impact from the unprecedented and markedly lower dissolving wood pulp (DWP) prices. Consequently, the group generated EBITDA excluding special items of US$139 million compared to the US$197 million in the equivalent quarter last year. Profit for the comparative period decreased by US$57 million to US$24 million primarily due to the lower DWP prices.

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