Sappi Limited (OTCPK:SPPJY) Q1 2025 Earnings Conference Call February 5, 2025 9:00 AM ET
Company Participants
Steve Binnie – Chief Executive Officer
Marco Eikelenboom – Chief Executive Officer, Sappi Europe
Mohamed Mansoor – Executive Vice President, Sappi Pulp
Glen Pearce – Chief Financial Officer
Mike Haws – Chief Executive Officer, Sappi North America
Graeme Wild – Chief Executive Officer, Sappi Southern Africa
Conference Call Participants
Lars Kjellberg – Stifel
James Perry – Citi
Brian Morgan – RMB Morgan Stanley
James Twyman – Prescient
Brent Madel – Absa
Sean Ungerer – Chronux Research
Andrew Jones – UBS
Steve Binnie
Good day, everybody, and thanks for joining us. As always I’ll go through the presentation, calling out the page numbers as I move through, and I’m going to start on Page 3, which has some of the key highlights for the quarter. Overall, we were pretty pleased with the quarter. A good set of numbers, good start to the year, ahead of expectations, both internally and externally, so we’re obviously pleased with that.
Segmentally, the Pulp segment delivered another strong performance. We continued to see good demand, our Mills are fully sold out, and we continue to be optimistic about that business going forward. Graphics, good quarter, good margins. We did get cost savings. I’ll go into more detail on this, but overall, very satisfied. Packaging was more difficult, but there was some specific unique circumstances there, and once again, I’ve got a slide on that which I’ll go into. Having said that, profitability was better than a year ago, so obviously pleased there.
The other aspect of the results is that despite the higher CapEx, I’m pleased to say that our debt-leverage ratio did come down to 1.9. Obviously, we knew it was going to go up at the end of last year and
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