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Ahlstrom-Munksjö Half-Year Report January-June 2020: SOLID RESULT UNDER EXCEPTIONAL CIRCUMSTANCES


This release is a summary of Ahlstrom-Munksjö's' half-year financial report January-June 2020. The complete report is attached to this release as a pdf-file. It is also available at


  • Solid comparable EBITDA and increased margin despite the decline in delivery volumes caused by the coronavirus pandemic
  • Swift response and cost reduction actions cushioned the impact of the pandemic
  • Customer activity varied within Ahlstrom-Munksjö's broad geographical reach and product range as a result of the pandemic  
  • Strong growth in the healthcare and life science end-use segments, expansion of face mask materials production. Clear weakening in home building and furniture, transportation and industrial end uses.
  • Signs of a gradual normalization of customer activity in certain segments towards the end of the quarter
  • Improved financial flexibility and good liquidity with no major refinancing needs
  • Launch of Ahlstrom-Munksjö FortiCell®, a new range of fiber-based solutions for energy storage applications

Q2/2020 compared with Q2/2019

  • Net sales decreased by 16.6% to EUR 621.5 million (745.1), mainly due lower delivery volumes 
  • Comparable EBITDA decreased by 11.7% to EUR 74.0 million (83.8), representing 11.9% (11.2) of net sales, supported by variable and fixed costs reduction actions
  • Operating result of EUR 25.8 million (35.0)
  • Net result EUR 9.0 million (14.8)
  • Earnings per share (basic) EUR 0.07 (0.13)
  • Comparable EPS excluding depreciation and amortization arising  from PPA EUR 0.18 (EUR 0.25)

Q1-Q2/2020 compared with Q1-Q2/2019

  • Net sales decreased by 10.9% to EUR 1,339.6 million (1,502.8), negatively impacted by price, product mix and volumes 
  • Comparable EBITDA increased by 4.4% to EUR 165.7 million (158.8), representing 12.4% (10.6) of net sales, as lower variable costs more than offset lower selling prices and deliveries
  • Operating result of EUR 99.6 million (52.9), including a capital gain of EUR 32.0 million from the sale of the fine art paper business
  • Net result EUR 55.7 million (18.9)
  • Earnings per share (basic) EUR 0.46 (0.16)
  • Comparable EPS excluding depreciation and amortization arising from PPA EUR 0.48 (0.46)
  • Net debt decreased to EUR 878.7 million (885.0 in Q4/2019), supported by the sale of the fine art paper business

PPA = purchase price allocation


Key figures Q2 Q2 Q1 Q1-Q2 Q1-Q2 Q1-Q4
EUR million, 2020 2019 2020 2020 2019 2019
or as
Net sales 621.5  745.1  718.1  1,339.6  1,502.8  2,915.3 
Comparable 74.0  83.8  91.7  165.7  158.8  312.9 
Comparable 11.9  11.2  12.8  12.4  10.6  10.7 
margin, %
EBITDA 69.1  78.1  120.5  189.6  138.3  279.4 
Comparable 31.8  40.7  49.1  80.9  73.3  139.0 
Operating 25.8  35.0  73.7  99.6  52.9  103.2 
Net result 9.0  14.8  46.6  55.7  18.9  32.8 

Earnings per 0.07  0.13  0.40  0.46  0.16  0.27 
(basic), EUR
Comparable 0.10  0.16  0.21  0.31  0.29  0.50 
per share
Comparable 0.18  0.25  0.30  0.48  0.46  0.84 
arising from
EUR [*]

Return on 5.9  1.7  6.5  5.9  1.7  2.9 
rolling 12
months, %
Comparable 5.4  6.4  6.0  5.4  6.4  5.2 
rolling 12

Return on 6.4  3.6  6.8  6.4  3.6  4.4 
rolling 12
Comparable 6.3  6.9  6.6  6.3  6.9  5.9 
rolling 12

Net cash 8.5  63.1  11.8  20.4  92.9  286.7 

Capital 24.4  38.7  26.3  50.7  74.2  161.1 
Net debt 878.7  1,044.7  854.3  878.7  1,044.7  885.0 
Gearing 74.3 
ratio, %

*Depreciation and amortization arising from PPA (purchase price allocation) comprise depreciation and amortization charges from fair value adjustments relating to the business combinations starting from 2013


I'm pleased with our performance in the second quarter, and particularly with our swift response and actions to mitigate the near-term impact of the coronavirus pandemic. Considering the exceptional circumstances,  comparable EBITDA of EUR 74 million and an improved margin of 11.9% is a good achievement. We have been able to keep our plants operational and serve our customers, while ensuring the health and safety of our employees thanks to our COVID-19 Safety Protocol. In addition, we have increased our financial flexibility and currently have good liquidity, with no major near-term refinancing needs.


Within our broad product range of advanced fiber-based solutions, the impact of the coronavirus pandemic on customer activity has varied. Demand remained strong in the healthcare and life science end-use segments, while it remained relatively stable in the consumer goods segment, albeit with some variation depending on end use. The biggest decline was in the home building and furniture, transportation and industrial end-use segments. All in all, the exceptional market environment led to a 10% reduction in our deliveries, which was the main driver behind the decrease in net sales and comparable EBITDA. However, we worked hard on our own actions to reduce variable and fixed costs, and this cushioned the impact of lower volumes.

I'm also pleased that we were able to drive our business forward during the pandemic. Our in-depth knowledge of fiber-based materials, agile organization and common manufacturing platform enabled us to expand our manufacturing capabilities of face mask fabrics globally to lines normally used for the production of other fiber-based materials. We also took further steps in supplying the  electric vehicle battery market by introducing a platform of fiber-based energy storage applications solutions. Our other new value-added solutions include a replaceable filter media for branded outdoor apparel used as face masks. 

Our work was awarded the EcoVadis Gold rating for the fourth consecutive year thanks to our good performance within environmental impact, labor practices, fair business practices and sustainable procurement. This reinforces our sustainability strategy.


We will continue with actions to mitigate the impact of the weak market demand in the third quarter. Meanwhile, we continue to work on ensuring competitiveness in the longer term and pursuing our previously announced cost saving programs. Overall, I'm very proud of how well our organization has performed in these very exceptional circumstances. This really highlights the strengths of our company culture, which relies on entrepreneurial leadership, customer collaboration, innovation and seamless worldwide teamwork.


The overall market environment remains uncertain, albeit with signs of a gradual normalization of customer activity in certain end-use segments. Good demand is expected to continue in the healthcare and life science end-use segments. Demand for consumer goods related products is expected to remain relatively stable, while continuing at a weak level in home building and industrial related products. Demand for furniture and transportation related products is expected to recover. Ahlstrom-Munksjö's delivery volumes in the third quarter of 2020 are expected to be lower than in the third quarter of 2019.

In the third quarter of 2020, scheduled maintenance shutdown at the Aspa pulp mill is expected to be carried out, with a negative profit impact of approximately EUR 4 million.

Ahlstrom-Munksjö's comparable EBITDA in the third quarter of 2020 is expected to be lower than in the third quarter of 2019.


As Ahlstrom-Munksjö manages a broad portfolio of businesses and serves a wide range of end uses globally, it is unlikely to be significantly affected at a group level by individual business related factors. However, slowing global economic growth and uncertain financial market conditions could have a materially adverse effect on the Group's financial results, operations and financial position. 

Recently, the key driver for increased uncertainty globally from an economic and social perspective has been the coronavirus pandemic. The risk of a broader economic downturn has clearly increased, and if it materializes, it may weaken demand for a wide range of Ahlstrom-Munksjö products for a longer period. According to the IMF, global growth is estimated at - 4.9% in 2020 and the pandemic has had a more negative impact on economic activity in the first half of 2020 than anticipated. The recovery is projected to be gradual. The full impact of the pandemic cannot be foreseen at this stage. It will depend on both the duration and severity of the pandemic, and related measures taken to contain it.

Ahlstrom-Munksjö has assessed carrying amounts of assets and liabilities, such as goodwill and other intangible, tangible assets, inventories, deferred taxes, trade receivables and pension plans and re-assessed the need of impairment. Based on the assessments, the consequences of the pandemic has currently no impact on asset valuations.

The company's significant risks and uncertainty factors mainly consist of developments in demand for and prices of sold products, the cost and availability of significant raw materials and energy, financial risks, as well as other business factors including developments in global politics, regulations and the financial markets. The company's financial performance may be impacted by the timing of possible raw material price increases and its ability to raise selling prices. On-going trade disputes pose a threat to the global economy, which may have an effect on Ahlstrom-Munksjö's markets. 

Operational risks such as personnel absences, supply of key raw materials and deliveries to customers have also increased due to the pandemic. These risks have been mitigated by a rapid and coordinated response, and the implementation of the Ahlstrom-Munksjö COVID-19 Safety Protocol. However, if the pandemic continues for a longer period, the exposure to the operational  risks may increase. 

The company's key financial risks include interest rate and currency, liquidity and credit risks. To mitigate short-term risks, methods such as hedging and credit insurance are used. Additional credit risk assessment has been implemented for customer receivables  to evaluate the potential implications of the coronavirus pandemic. Based on the assessment, the company has not identified any significant increase in the amount of bad debt, and there has currently not been any significant change in payment delays related to Ahlstrom-Munksjö's customer...

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