3rd 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.

Q3 2019

Financial results conference call

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 printing and writing 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 product* (%)

Sales by destination* (%)

Net operating assets** (%)

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

Highlights for the quarter

EBITDA excluding special items
US$118 million
Q3 2018 US$155 million

EPS excluding special items
4 US cents
(Q3 2018 10 US cents)

Profit for the period
US$8 million
(Q3 2018 US$51 million)

Net debt
US$1,728 million
(Q3 2018 US$1,603 million)

Commentary on the quarter

Market conditions across Sappi's major product categories were challenging during the quarter. The principal factors affecting results were sluggish graphic paper demand, resulting in 89,000 tons of production downtime scheduled across our European and North American paper operations and dissolving wood pulp (DWP) prices that weakened significantly due to soft viscose staple fibre (VSF) markets. Due to the seasonality of the business we also scheduled much of our maintenance activity during this period, including annual shuts at Ngodwana, Saiccor and Cloquet Mills.
View more on commentary on the quarter