Sappi, a maker of pulp and paper, reported a profit of $18 million for the quarter ended June 30 – the third quarter of its fiscal year 2021 – compared to a loss of $73 million in the third quarter of 2020.
Earnings per share excluding exceptional items were $0.05, compared to a loss per share of $0.10 in the previous comparable quarter.
Sappi’s earnings before interest, taxes, depreciation and amortisation (Ebitda), excluding special items, were $145-million in the third quarter of. That compares with Ebitda of $26-million for the same period last year. The company says it has seen a significant improvement in market conditions in the majority of its trading regions during the quarter. However, European business remains under pressure due to escalating raw material costs and logistical challenges. Sappi’s results were partially offset by global logistical challenges, which impacted on export deliveries and costs in all three regions.
The group also experienced challenges at the Port of Durban, as a result of unrest in South Africa in mid-July and a cyberattack on Transnet Port Terminals’ operations in the same month. Sappi says its fourth quarter Ebitda is expected to be $16 million lower than last year.
Shares of Arvind declined 2.50 per cent to Rs 105.45 apiece on BSE after the company reported a fall in its quarterly earnings. EBITDA margins in textiles stood at 8.9 per cent, while denim volumes grew 2.8 times on a year-on-year basis. Textile performance was relatively strong given the impact of (COVID) wave 2, both in domestic markets as well as factory closures.
Image Source: sappi.com
