Ahlstrom Holding 3 Oy has today published its January–March 2024 financial report. The report is available at www.ahlstrom.com/investors.
Helen Mets, President and CEO, comments on the first quarter of 2024:
I am pleased with the strategic progress we continue to make on our transformation journey towards becoming the preferred sustainable specialty materials company. Our good profitability and solid cash flow in the first quarter, combined with stronger innovation efforts and sustainability progress, demonstrate the successful steps we have executed upon.
Solid financial performance
During the first quarter, market activity showed improvement. Deliveries increased both compared to the fourth quarter and the first quarter of the previous year. Comparable EBITDA increased year-over-year due to improved margin on variable cost per ton, largely thanks to the strong execution of our transformation initiatives. Profitability in the current quarter was, however, impacted by rising input costs, which we are addressing through our strong pricing management. Overall, net operating cash flow remained solid, thanks to efficient working capital management.
Refined strategy and simplified structure
Another step in our transformation is the launch of a refined strategy and the simplification of our divisional structure. We have defined five strategic pillars which enable Ahlstrom’s businesses to advance their ability to lead in existing markets or to enter new markets in response to one or more global trends. We aim to generate organic growth above GDP, healthy margins, and strong cash flow in the coming years, and be recognized in the market as the preferred sustainable specialty materials company. To support the strategy execution, we have decided to simplify our divisional structure from five to three: Filtration and Life Sciences, Food and Consumer Packaging, and Protective Materials. The streamlined structure will reduce complexity between shared plants and will drive speed and agility allowing the business to further focus on growth.
Addressing global trends and customer needs
Among the biggest challenges in the coming years are the transition toward clean air and water, personalized healthcare, sustainable packaging and protection, decarbonized buildings, and electrification. Sustainable materials will be needed to address these trends, and Ahlstrom has unique and leading technology to provide the solutions. Together with our partners in the value chain, we continue to develop our portfolio to ensure its resilience for today and for the future. During the first quarter, we launched new and improved products, supporting our customers’ business goals, including a home compostable fiber-based lid offering for single-serve coffee capsules.
Driving operational strength
We have initiated a consultation process at the Bousbecque plant in France to explore the possibility of either divesting or closing the plant. Additionally, we plan to centralize parchment paper production at the Saint-Séverin plant in France as part of our efforts to reduce production costs. We understand that this will be a difficult time for our employees at Bousbecque, and we are committed to examining all options to minimize social consequences.
Looking ahead
I’m confident that the steps we continue to take will strengthen our businesses' ability to lead in sustainable specialty materials. Together with solid profitability and cash flow, I have no doubt that Ahlstrom will drive sustainable value creation for all our stakeholders.
Earnings call for investors on May 8, at 15:00 EEST
A live audiocast and teleconference will be arranged today, May 8, at 15:00 EEST (14:00 CEST). The event will be hosted by President and CEO Helen Mets, and CFO Niklas Beyes.
Questions to the management can be asked either via the chat box in the audiocast or in person by phone in the conference call.
Audiocast registration link:
https://ahlstrom.videosync.fi/q1-2024
Teleconference registration link:
http://palvelu.flik.fi/teleconference/?id=10013023
After the registration to the teleconference, the participant will be provided with phone numbers and a conference ID to access the call. To ask a question, press *5 on your telephone keypad to enter the queue.
By joining audiocast or teleconference, the participant agrees that personal information such as name and company name will be collected. The event will be recorded.
Additional information:
Johan Lindh, Vice President, Investor Relations, + 358 10 888 4994,
Ahlstrom in brief
Ahlstrom is a global leader in combining fibers into sustainable specialty materials. Our purpose is to Purify and Protect, with Every Fiber, for a Sustainable World. Our vision is to be the Preferred Sustainable Specialty Materials Company for all our stakeholders. Our three divisions, Filtration and Life Sciences, Food and Consumer Packaging, and Protective Materials, address global trends with safe and sustainable solutions. Our net sales in 2023 amounted to EUR 3.0 billion and we employ some 7,000 people. Read more www.ahlstrom.com
