Lecta publishes its Q2 2019 results

Financial News

Lecta’s revenue consists of net sales of paper and sales of energy (see the section Revenue in the Interim Financial statements). The core activity of Lecta is to produce and sell paper.

In this context, Lecta operates cogeneration plants that burn gas and produce electricity and steam. The production of steam is internally consumed, while the production of electricity can be internally consumed or sold to the grid. For the segment reporting, the sale of electricity to the grid is not considered as revenue but as reduction in energy cost to produce paper.

n 2Q2019, the net sales of Coated Woodfree were €160 million vs €185 million in 2Q2018, a decrease of €25 million or -14%. The Ebitda at €11 million was lower than in 2Q2018 (€21 million). This decrease was mainly due to a reduction in sales volume and an increase in distribution costs, partly offset by an increase of net sales price and a reduction of variable production costs and fixed expenses.

In June 2019, a new Enterprise Resource Planning system was implemented in Lecta’s Riva del Garda Italy paper mill. Implementation was more challenging than expected, resulting in a loss of production deliveries of CWF from the mill, as well as extra cost. The estimated and accounted for EBITDA impact in 2Q 2019 was negative €(1.9) million.


Source: Lecta