Our earnings bridge:
We expect Q2 Paper EBIT of PLN 38m, down from PLN 94m in Q1’24. The main effects q-o-q are likely PLN 1m from slightly higher paper prices (UWF prices flat q-o-q, CWF +3%), PLN 3m from marginally better volumes and PLN -60m from higher pulp prices. Pulp EBIT will likely be ~PLN 27m better q-o-q driven by higher pulp volumes and pulp prices. Hence, we expect Q2 group EBIT of PLN 58m vs. PLN 84m in Q1’24. We expect Q3 Paper EBIT of PLN 50-70m, driven by better demand and higher paper prices.

https://cr.abgsc.com/contentassets/ed9dac17ae81416384fbd2addaed5efb/pdf/paper-improves-but-pulp-costs-weigh.pdf

ABGSC Commissioned Research