Ahlstrom Oyj (AM1S) Q4 2023 earnings summary

Executive summary

• FY23 comparable EBITDA remained resilient despite lower deliveries; variable-cost margin per ton improved and comparable EBITDA margin reached a record 14.1%.

• Transformation investment peaked in 2023; portfolio actions included the Stenay divestment and commissioning of a new glass fiber tissue line in Madisonville.

Financial highlights

• FY net sales were €2,972.9m, down 11.2% YoY (8.9% at constant currency); comparable EBITDA was €420.1m vs €440.2m, with margin rising to 14.1% from 13.1%.

• Q4 net sales fell to €692m from €834m; comparable EBITDA increased to €112m from €83m, and margin rose to 16.2% from 10.0%.

• FY EBITDA increased to €350.3m from €299.8m; operating result was €165.4m vs €113.8m, while continuing-operations net result was a loss of €80.1m vs income of €10.1m.

• Reported EBITDA improved to €34m in Q4 from a €41m loss; FY reported EBITDA improved to a €39m loss from a €116m loss.

• FY net financial items were €-205.1m vs €-84.4m, including a €-26.1m fair-value loss on interest-rate hedges and a €-20.0m impairment on a loan to Stenay.

Outlook and guidance

• Positioned for earnings growth as markets rebound; transformation investment has peaked and transformation costs are expected to decrease as internal capabilities strengthen.

• FY24 initiatives are estimated to generate €48.2m of savings within 12 months of implementation; FY23 initiatives had estimated savings of €18.7m not yet included in LTM EBITDA.

• Market recovery was slower than anticipated and visibility remained low; new opportunities continue to be identified for 2025 and beyond.