Against the background of weak demand and a difficult macroeconomic context, Reno de Medici posted red figures in Q1 2013. However, the company's loss was less pronounced than in the same period last year.
Italian board manufacturer Reno de Medici recorded a loss in the first three months of the year. However, results were up from last year’s first quarter results and in line with the performance in the final months of 2012, according to the company. Demand for white lined chipboard for packaging produced from recycled fibre remained weak but had risen by 6.6% compared with the previous quarter, Reno de Medici said. "The specific outlook for the sector is better than the general macroeconomic picture,” the company stated, adding that capacity utilisation was currently good and the order backlog satisfactory as global capacities had reduced.
Reno de Medici posted an operating profit of €1.83m, up from €657,000 in the first quarter of last year. The company’s net loss amounted to €226,000 in this year’s first quarter compared to a more pronounced loss of €2.12m in the same period of 2012. Gains from investments made the difference, in particular. They reached €177,000 in Q1 2013 but were negative at €-679,000 in the first three months of last year. Reno de Medici explained that this was mainly attributable to the adjustment of the company’s 33.33% investment in paperboard manufacturer Pac Service. According to the company, recovered paper prices were relatively stable in the first three months of the year while natural gas tended to become more expensive, especially in March. However, Reno de Medici was reportedly able to reduce its energy costs year-on-year thanks to new contracts.
Sales increased 5.2% year-on-year to €122.68m in Q1 2013. Higher deliveries were the main factor entailing this growth. Reno de Medici shipped 227,000 t of board in the period under review, 19,000 t more than in the first quarter of 2012. Furthermore, the company said that sales in overseas markets had reduced but that it had sold more in markets with greater margins in return.
As regards the cost development after the first quarter, Reno de Medici said that the expected rise in recycled fibre prices had confirmed, partly due to falling supply in Italy. This was why the company had announced an increase to its list prices in April, Reno de Medici explained, adding that it needed to restore adequate margins.