Arla Plast Q3 Report 2023

• Sales volume amounted to 4,819 tonnes (3,817 tonnes) an increase by 26%.
• Net sales amounted to SEK 262.9 million (SEK 232.0 million), an increase by 13%. The organic increase was 5%.
• Operating profit amounted to SEK 28.0 million (SEK 10.8 million), an increase by 159%.
• The operating margin increased to 10.7% (4.7%)

Our volumes increased by 26 percent compared to the previous year, while net sales increased by 13 percent. Net sales were positively affected by effects from organic growth, currency and acquisitions, while lower raw material prices counteracted. We see increased competition, driven by the economy, in certain product areas such as PETG and MWPC. At the same time, we continue to strengthen our offer within special products, which is made clear by an increased share of sales of OPC. We have successfully started the sale of PMMA products to infrastructure projects in the Nordics, which is an important step towards further broadening our product and customer portfolio.

During the third quarter of 2023, the operating profit amounted to SEK 28.0 million, which represents a significant increase compared to the same period last year. We have defended our margins in a market with falling prices and the gross margin strengthened further this quarter to 23.4 percent. A favorable product mix and efficient material use are reflected in the improved profitability