Billerud Q2 Sales Slip 4% as European Weakness Offsets North American Growth

Swedish packaging materials manufacturer Billerud reported a 4% year-over-year decline in second-quarter sales, as pricing pressure and lower volumes in Europe overshadowed strong performance in its North American division. The company announced total sales of SEK 9.83 billion for the period.

Quarterly Performance Breakdown

Billerud's profitability came under pressure during the quarter, with adjusted EBITDA falling to SEK 661 million. This represents an adjusted EBITDA margin of 7%, down from 9% in the same quarter last year. The company posted an operating loss of SEK 58 million.

A net loss of SEK 64 million, or SEK 0.26 per share, was recorded for the quarter. According to the company's report, the loss was influenced by costs associated with a scheduled maintenance shutdown and the loss of emission allowances.

A Tale of Two Regions

The quarter highlighted a significant divergence in regional performance. The North American market was a bright spot, delivering 11% currency-neutral net sales growth and its highest shipment volumes since 2022, supported by solid market conditions and pricing actions.

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Conversely, the European region faced headwinds from lower sales prices and reduced volumes. However, Billerud noted that sequential profitability in Europe improved from the previous quarter, helped by price increases, a more favorable sales mix, and lower input costs.

Outlook and Cost Management

Looking ahead to the third quarter, Billerud expects solid market conditions to persist in North America, while the outlook for Europe remains "somewhat improved but uncertain." The company anticipates a positive pricing impact in both regions and projects that input costs will remain flat.

Billerud also reported progress on its efficiency programs, delivering SEK 150 million in cost savings during the second quarter.