Select Sappi Q1 Report 2024

Highlights for the quarter

• EBITDA excluding special items US$156 million (Q1 FY23: US$290 million
• Net debt of US$1,216 million (Q1 FY23: US$1,241 million)
• EPS excluding special items 8 US cents (Q1 FY23: 30 US cents)

Within the context of ongoing challenging global macroeconomic conditions and weak paper markets, the group delivered EBITDA excluding special items (EBITDA) of US$156 million, which was in line with guidance provided in the prior quarter. Profitability was negatively impacted by approximately US$45 million due to the lower production volumes associated with the planned maintenance shutdowns at the Saiccor, Ngodwana and Cloquet Mills offset somewhat by a US$26 million positive plantation fair value price adjustment. We recognize that our forestry assets are an integral part of the South African business and we have therefore taken the decision to include the forestry valuation in our EBITDA, thereby aligning with many of our peers.