Thanks to diversification in various business segments, CPH delivered a relatively sound performance in 2020. While the largest business division, the Paper Division, suffered a marked decline in sales and saw its operating result drop, the Chemistry and Packaging Divisions were able to post higher operating profits. For a long time, CPH has pursued a strategy of compensating for the eroding paper business by growth in the other two divisions. This has worked well in recent years. The strength of Chemistry and Packaging also helped cushion the earnings setback last year. At the group level, sales were still down 15% to CHF 445 million, and operating profit fell 56% to CHF 25 million.

In the coming years, the Chemistry and Packaging Divisions will be further developed. Aiming to increase the relatively small Chemistry Division, CPH is looking for acquisition opportunities. Higher margins could be achieved in both divisions, CEO Peter Schildknecht explained in a web presentation. For 2021, he expects a "solid development".

The Paper Division, on the other hand, is expected to incur more losses in 2021. "Paper prices continue to be under pressure, and demand is steadily declining," Schildknecht comments on the industry development. CPH cannot escape this trend. Newspaper content is being consumed more and more online, and print circulation is declining. As a result, the cut-throat competition among paper manufacturers is gaining in intensity. At least the company has the most efficient production in Western Europe, allowing it to stay competitive. Schildknecht describes last year's slightly negative operating result as good by industry standards.

Read the full article here (in German).