Portugal Navigator's quarterly profit soars 68% on strong paper demand
08/02/2022 18:01
By Sergio Goncalves
LISBON, Feb 8 (Reuters) - Portugal's pulp and paper producer
Navigator NVGR.LS posted on Tuesday a 68% increase in
fourth-quarter net consolidated profit thanks to higher prices
stoked by strong demand amid continuing global economic recovery
from the COVID-19 pandemic.
"As the economy recovers...conditions in the pulp, paper and
tissue sector are expected to remain globally positive," it
said in a statement, adding that stocks of uncoated woodfree
paper (UWF) were at historically low levels.
Navigator, which sells more than 80% of its output abroad in
as many as 130 countries, said it netted 57.2 million euros
($65.3 million) in the quarter, as sales rose to offset an also
strong increase in raw material and logistics costs.
Total sales grew 39.5% in the fourth quarter from a year ago
to 476 million euros, and were 18% higher than in the third
quarter.
Navigator raised tissue paper prices in early December by
8%-10% in Iberia, implementing a higher increase outside this
region, and last month increased the price of UWF by 10%-15%.
Earnings before interest, taxes, depreciation and
amortisation (EBITDA) rose 45% in the quarter from a year ago to
108.7 million euros.
For all of 2021, net profit jumped 57% to 171 million euros,
while EBITDA increased 24%, and the company said the executive
board would propose an additional dividend payout of 0.1406 per
share.
($1 = 0.8759 euros)
(Reporting by Sergio Goncalves; editing by Andrei Khalip)
((sergio.goncalves@thomsonreuters.com; +351213509204; Reuters
Messaging: sergio.goncalves.reuters.com@reuters.net))