Arla Plast Q2 Report 2023

 

• Sales volume amounted to 5,193 (5,371 tonnes) a decline by 3%.
• Net sales amounted to SEK 274.6 (267.1) million, an increase by 3%. The organic decline was 10%.
• Operating profit amounted to SEK 32.0 (13.5) million, an increase by 137%. Government grant for electricity is included amounting to SEK 5.5 million.
• The operating margin declined to 11.6% (5.0%). Operating margin excluding government grant for electricity was 9.6%.

The volumes declined by 3 percent during the second quarter while the net sales increased by 3 percent. The increased net sales were positively affected by currency movements as well as the acquisition, whereas the lower raw material prices affected net sales negatively. The application areas that have been strong during the quarter are energy, automotive, industry and security, while construction industry is generally weak but where we have noted a positive seasonal effect.

The operating cash flow improved significantly in comparison to previous year thanks to the higher operating profit and an improvement in working capital. Primarily, we have managed to keep the stock on lower levels based on an expectation of continuing decline of raw material prices.