Portugal's Navigator net profit drops 53% as virus hits paper consumption
28/07/2020 19:54
By Catarina Demony
LISBON, July 28 (Reuters) - Portugal's Navigator Company
NVGR.LS on Tuesday reported a 53% drop in first-half net
profit to 44 million euros ($52 million), due to a sharp
downturn in global paper consumption during lockdowns imposed to
fight the spread of the coronavirus outbreak.
Navigator, which sells its pulp and paper products in more
than 100 countries on five continents, said in a statement it
saw total sales fall 18.6% to 695 million euros during the first
six months of the year.
"The significant slowdown in the economy had a strong impact
on the graphic papers industry, but despite the strict lockdowns
imposed, the severest impact was felt by the printing industry
segment," said the company, which is controlled by the
Portuguese conglomerate Semapa.
There were significant variations between European markets,
Navigator said, with consumption dropping less in countries
where measures were not as severe, compared with those where
strict lockdowns were enforced.
First-half EBITDA (earnings before interest, taxes,
depreciation and amortisation) totalled 140 million euros, down
32%, it said.
Though the outlook for the rest of the year is still
uncertain, the company said there were a number of recent
positive signs.
"Navigator is now receiving new orders at a pace close to
normal for the first time this year," it said, adding that the
group's paper machines were operating again.
But the "risk remains of a second wave of the pandemic, with
the negative impact this may bring for exporting companies like
Navigator", it said.
($1 = 0.8530 euros)
(Reporting by Catarina Demony
Editing by David Holmes)
((catarina.demony@thomsonreuters.com; 00351213509216;))