Borregaard (BRG) Q1 2025 earnings summary

Executive summary

• Operating revenues rose 3% year-over-year to NOK 2,036 million in Q1 2025, with EBITDA up 16% to NOK 511 million, driven by record BioSolutions results and strong agricultural sales.

• Positive net currency effects contributed NOK 45 million to results.

• Earnings per share increased to NOK 2.52 from NOK 2.01 year-over-year.

• BioMaterials remained stable, while Fine Chemicals declined due to lower bioethanol prices.

Financial highlights

• EBITDA margin improved to 25.1% from 22.4% year-over-year.

• Cash flow from operating activities was NOK 129 million, reversing a negative NOK 183 million in Q1 2024.

• Net interest-bearing debt decreased to NOK 2,126 million from NOK 2,240 million at year-end 2024.

• Equity ratio strengthened to 58.2% from 52.5% year-over-year.

• Leverage ratio improved to 1.09 from 1.21 year-over-year, well below covenant of 3.50.

Outlook and guidance

• BioSolutions sales volume for 2025 forecast at 330,000 tonnes, with Q2 expected at 85,000 tonnes and a less favourable product mix.

• BioMaterials 2025 sales volume expected at ~150,000 tonnes, with higher share of specialised grades and 8-10% higher average prices in H1 2025 versus H1 2024.

• Fine Chemicals bioethanol prices expected to be significantly lower than 2024, with increased supply in Europe and higher intermediates sales volume.

• Wood costs expected to remain high or stable; recent investments to reduce energy costs and CO2 emissions.

• Ongoing monitoring of tariffs, global conflicts, and market conditions due to uncertainty.