Ahlstrom-Munksjö Specialties Q1 Report 2024

Helen Mets, President and CEO, comments on the first quarter of 2024:

I am pleased with the strategic progress we continue to make on our transformation journey towards becoming the preferred sustainable specialty materials company. Our good profitability and solid cash flow in the first quarter, combined with stronger innovation efforts and sustainability progress, demonstrate the successful steps we have executed upon.

Solid financial performance

During the first quarter, market activity showed improvement. Deliveries increased both compared to the fourth quarter and the first quarter of the previous year. Comparable EBITDA increased year-over-year due to improved margin on variable cost per ton, largely thanks to the strong execution of our transformation initiatives. Profitability in the current quarter was, however, impacted by rising input costs, which we are addressing through our strong pricing management. Overall, net operating cash flow remained solid, thanks to efficient working capital management.

Refined strategy and simplified structure

Another step in our transformation is the launch of a refined strategy and the simplification of our divisional structure. We have defined five strategic pillars which enable Ahlstrom’s businesses to advance their ability to lead in existing markets or to enter new markets in response to one or more global trends. We aim to generate organic growth above GDP, healthy margins, and strong cash flow in the coming years, and be recognized in the market as the preferred sustainable specialty materials company. To support the strategy execution, we have decided to simplify our divisional structure from five to three: Filtration and Life Sciences, Food and Consumer Packaging, and Protective Materials. The streamlined structure will reduce complexity between shared plants and will drive speed and agility allowing the business to further focus on growth.