Global paper supplier has a buoyant outlook for the full year.

 

European paper and packaging giant UPM has reported record earnings in its second quarter and expects to do the same for the full year.

 

The re-opening of its Finnish operations at the end of April following a lengthy strike helped the group’s Q2 sales increase by seven per cent to €2.56 billion ($2.61 billion) while adjusted EBIT jumped by 27 per cent to €387 million.

 

UPM said its Communication Papers division had a strong quarter. Sales rose by 1.6 per cent to €1.02 billion despite delivery volumes falling by more than 11 per cent to just over one million tonnes. Demand for graphic papers was “good” and price increases exceeded the rise in input costs. Compared with last year, UPM said the average Q2 price in euros for its paper deliveries increased by 77 per cent.

 

Comparable EBIT at Communication Papers was €126 million versus €20 million in Q2 2021, while comparable EBIT margin increased by 990 basis points to 12.4 per cent.

 

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