Borregaard ASA Achieves Significant Growth in 2nd Quarter
Financial Overview of Borregaard ASA
Borregaard ASA has demonstrated a commendable financial performance, with operating revenues rising to NOK 2,045 million, up from NOK 1,949 million, in the latest quarter. This positive trend is supported by a notable EBITDA of NOK 522 million, which increased from NOK 510 million in the past year. This growth is attributed to strong sales in various sectors, particularly in their BioSolutions and BioMaterials divisions.
Growth in BioSolutions and BioMaterials
The substantial growth in Borregaard's BioSolutions sector can be primarily linked to an ongoing surge in demand within the agriculture industry. This upward trend in sales positively influenced the overall performance of the division. Meanwhile, BioMaterials also saw a boost in results thanks to an improved product mix, higher sales prices, and increased sales volumes, although these gains were slightly offset by rising wood costs.
Challenges in Fine Chemicals
On the flip side, the Fine Chemicals sector faced challenges, primarily due to decreased sales prices for bioethanol, which negatively impacted the results for this particular division. Despite this setback, the company experienced overall favorable currency effects across all sectors, contributing positively to the financial landscape.
Profitability and Management Insights
Profit before tax echoed a strong performance at NOK 326 million, slightly up from NOK 322 million. Earnings per share also reflected this positive trend, increasing to NOK 2.56 from NOK 2.45. In a statement regarding these outcomes, President and CEO Per A. Sørlie expressed satisfaction with the results and highlighted the influence of agriculture-driven sales and price increases for specialty cellulose as key factors in this success.
Key Contacts for Investors
For further inquiries and detailed discussions regarding the company's performance, investors can reach out to:
Knut-Harald Bakke
Director Investor Relations, +47 905 79 164
Dag Arthur Aasbø
SVP Organisation and Public Affairs, +47 918 34 108
Future Outlook and Strategic Directions
Looking ahead, Borregaard ASA aims to build on its strengths in both BioSolutions and BioMaterials. The company is committed to navigating the challenges presented in areas like Fine Chemicals while ensuring that growth in agriculture-related sales continues to soar.
Frequently Asked Questions
What were Borregaard ASA's operating revenues in the latest quarter?
The operating revenues for Borregaard ASA increased to NOK 2,045 million in the latest quarter.
How much did EBITDA reach for Borregaard ASA?
The EBITDA for Borregaard ASA reached NOK 522 million.
What factors contributed to the growth in BioSolutions?
The growth in BioSolutions was primarily driven by a surge in sales to agriculture.
What challenges did Fine Chemicals face during the quarter?
Fine Chemicals experienced challenges due to lower sales prices for bioethanol, impacting its results negatively.
Who can investors contact for more information about the company?
Investors can contact Knut-Harald Bakke, Director Investor Relations, or Dag Arthur Aasbø, SVP Organisation and Public Affairs, for further inquiries.
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