Monday, July 29, 2024
Ahlstrom Holding 3 Oy has published its January–June 2024 financial report.
Helen Mets, President and CEO, comments on second quarter 2024:
Ahlstrom delivered another strong performance in Q2. Our profitability improved once again, while cash flow remains solid. Obsessed with our customers and the markets we serve; we launched several innovative new products − including fluorochemical-free filtration and paper-based pet food materials − to meet the growing need for safe and sustainable solutions. We also refined our strategy and streamlined our organization to accelerate our growth transformation. In addition, our Q2 pulse survey showed an increase in employee engagement. The latest engagement score places Ahlstrom close to the level of the top 10% of companies in the manufacturing industry. I am proud of the progress that we continue to deliver.
Increased profitability and continuation of solid cash flow
Market activity continued to strengthen during the second quarter. When adjusted for the Stenay divestiture, deliveries increased compared to both the previous quarter and the same period last year. Comparable EBITDA also saw growth, driven by a robust margin on variable cost per ton. This improvement is largely due to our transformation initiatives, such as disciplined price management and cost efficiency measures. Overall, cash flow remained solid, bolstered by higher profitability, efficient working capital management, and sustainably lower capital expenditur
Simplified structure to accelerate growth
As part of its ongoing transformation, the company has implemented a refined growth strategy and streamlined its divisional structure. During the quarter, it completed the composition of its leadership team, expanding the role of Chief Innovation Officer Konraad Dullaert to include leadership of the Food and Consumer Packaging division. This division is now poised to lead the transition from single-use plastics to sustainable packaging alternatives through innovative barrier solutions and other high-performance materials. All three divisions of the company are aligned with long-term growth trends and are well-positioned for profitable growth.
Building operational strength
Efforts to align the company’s assets and portfolio with market demand continued in Q2. The ramp-up of the glass fiber tissue line in Madisonville, Kentucky, is progressing, with commercial products now being supplied to customers in the building and construction industry. The company also completed the consultation process at its plant in Bousbecque and will consolidate parchment production at the Saint-Severin site in France. Minimizing the impact of the closure on Bousbecque employees remains a priority.
A look ahead
Looking ahead, the company is confident that its commitment to sustainability and innovation will continue to drive growth. With a refreshed strategy, a simplified organizational structure, and a team of highly engaged employees, the transformation is progressing well. The company expresses gratitude to its employees, customers, and partners for their continued support and collaboration. Together, they are building a better world and shaping the future of sustainable specialty materials. The company is excited about the opportunities that lie ahead.
Earnings call for investors on July 29, at 16:00 EEST
A live audiocast and teleconference will be arranged today, July 29 at 16:00 EEST (15:00 CEST). The event will be hosted by President and CEO Helen Mets, and CFO Niklas Beyes.
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