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Third party research

Arctic Paper: Paper improves, but pulp costs weigh - ABG

Arctic Paper

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

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Our earnings bridge:
We expect Q2 Paper EBIT of PLN 38m, down from PLN 94m in Q1'24. The main effects q-o-q are likely PLN 1m from slightly higher paper prices (UWF prices flat q-o-q, CWF +3%), PLN 3m from marginally better volumes and PLN -60m from higher pulp prices. Pulp EBIT will likely be ~PLN 27m better q-o-q driven by higher pulp volumes and pulp prices. Hence, we expect Q2 group EBIT of PLN 58m vs. PLN 84m in Q1'24. We expect Q3 Paper EBIT of PLN 50-70m, driven by better demand and higher paper prices.
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