Arla Plast Q1 Report 2022

PRICES OF RAW MATERIAL CONTINUES TO RISE – LOWER VOLUMES

• Sales volume amounted to 4,941 tonnes (6,181 tonnes) a decline by 20%.
• Net sales amounted to SEK 226.7 (218.8) million, an increase by 4%. The organic increase was 1%.
• Operating profit amounted to SEK 11.4 (27.6) million, a decline by 59%. The adjusted operating profit amounted to SEK 11.4 (30.8) million, a decline by 63%.
• The operating margin declined to 5.0% (12.6%) and adjusted operating margin declined to 5.0% (14.1%).

Net sales and operating profit Arla Plast’s sales volume in the first quarter 2022 declined by 20 percent to 4,941 tonnes (6,181 tonnes) compared to the corresponding quarter last year. The decline in volume is primarily due to the fact that demand for pandemic related barrier products has diminished while application areas such as to the travel industry and the automotive industry have not recovered. Net sales increased by 4 percent to SEK 226.7 (218.8) million; organically the increase was 1 percent. Price adjustments in order to meet higher prices for input material affected net sales positively. Price competition continued during the quarter and we were not able to fully compensate for higher raw material prices, with gross margin falling to 15.2 percent (23.3 percent).