Heinzel Group’s solid result 2019 leaves it well equipped for corona crisis
Clear commitment to continued supply of customers with paper and pulp
Wien, March 31, 2020. Despite a significant drop in market prices for paper and pulp, Heinzel Group recorded the second best result in the company’s history in 2019 and is therefore well equipped for the current corona crisis. While production volume was further increased to slightly over 1.6 million metric tons, net sales, at EUR 1.92 billion, fell short of the all-time high of EUR 2.1 billion in the previous year. The strong decline in recovered paper prices could only partially offset this development so that EBITDA (EUR 181 million), EBIT (EUR 115 million) and net profit for the year (EUR 86 million) were also below the record levels of 2018. However, Heinzel Group significantly exceeded the figures of the 2017 financial year again. Likewise, the Group’s balance sheet structure improved once more: despite investments of EUR 111 million and smaller acquisitions, net debt was further reduced and the equity ratio rose to 56.8%.
Investments in further capacity expansion, efficiency increases and optimization
In addition to the newly constructed PM3 in Pöls with investments totaling EUR 130 million, conversions and quality improvements were carried out at all plants in 2019. All of these investments were aimed at further increasing capacity and reducing the use of chemicals and energy. Moreover, Heinzel Group again extended its range of activities in the Trading Business.
Outlook: Production maintained despite coronavirus
All of these measures provide the basis for Heinzel Group to continue its growth course. A high level of flexibility is required, in particular in times of uncertainty, in order to be able to adjust costs and capacity to any fluctuations in demand. A concrete estimate of the development in 2020 is currently not possible in view of the daily changes of the environment due to the COVID-19 pandemic. Taking rigorous protective measures for its employees, Heinzel Group is undertaking every effort to maintain production and sales in order to provide the basis for urgently needed hygiene and packaging products by supplying paper and pulp worldwide.
For further information regarding the developments of the 2019 financial year please refer to the Annual Report of Heinzel Group at www.heinzel.com/2019
With its industrial locations Zellstoff Pöls (Austria), Laakirchen Papier (Austria), Raubling Papier (Germany) and Estonian Cell (Estonia), Heinzel Group, which is united under the Heinzel Holding umbrella, is one of the main producers of market pulp and packaging paper in Central and Eastern Europe. Magazine paper rounds off the group’s portfolio.
The Trading Business consists of heinzelsales, a globally operating trading company for pulp, paper and board, and Europapier International, the leading paper wholesale company in Central and Eastern Europe. In addition, Bunzl & Biach is the largest and most important recovered paper trading company in Austria and a leading wholesaler in Central and Eastern Europe. Heinzel Group’s successful growth is based on meeting the highest customer demands with respect to quality and efficiency.
For enquiries please contact:
Telephone: +43-1-260 11-490
Heinzel Holding GmbH
Wagramer Straße 28–30