Arctic Paper wants to intensify cost optimization
News General news
Arctic Paper Group reports geopolitical turbulence and continued uncertainty regarding tariffs and trade barriers in the first quarter of 2025, which contributed to a cautious and hesitant market environment.
In the paper segment, the weaker demand of recent quarters was also evident in the first quarter. The packaging segment continued to develop stably. The investment in the production of molded fiber trays in Kostrzyn is in the final phase.
High raw material prices continued to put pressure on the Group's profitability, resulting in an EBITDA of PLN 22.9 million (112.0), which corresponds to an EBITDA margin of 2.8% (11.6), the company reports.
In order to mitigate the impact of the current headwinds and ensure the Group's financial stability, Arctic Paper has intensified efforts to optimize costs and operational efficiency. In light of this, decisions on new investment projects have been suspended, allowing the paper manufacturer to prioritize the completion of ongoing initiatives, resulting in lower expected capital expenditure for 2025: PLN 270 million compared to PLN 423 million last year, Arctic Paper explains.
