CPH in the media

CPH suffers loss due to raw material prices and write-offs

Finanz und Wirtschaft: In the fiscal year 2021, CPH Chemie + Papier Holding (CPH) posted significantly higher sales following the Covid-related slump and almost returned to its pre-crisis level. However, the Group had to contend with higher raw material costs. Nevertheless, management is confident for 2022.

The industrial group increased sales by 11.6 percent to 496.7 million Swiss francs in the past fiscal year. However, rising raw material costs have led to a halved operating result at EBITDA level of 25.7 million, CPH announced on Tuesday. After ordinary depreciation and amortization, there was an operating loss (EBIT) of 2.7 million francs. The net result was also impacted by the extraordinary impairment of 150 million, which was communicated only a few weeks ago, resulting in a net loss of 151.4 million below the line.

Chemistry Division significantly expanded

The Paper Division continued to make the largest contribution to sales. The sole Swiss paper mill sold CHF 230.9 million worth of newsprint and magazine paper. This is just under half of total sales. Demand remained stable after the Covid-related slump in the previous year 2021, it says. However, paper prices had reached new lows. In addition, recovered paper was in short supply, so that the plants were not fully utilized at times.

In order to be less dependent on the paper market in the future, CPH intends to further strengthen its other two pillars, Chemistry and Packaging. This worked well in 2021, especially in the Chemistry Division, which grew strongly. The smallest division, Chemistry, grew by almost 30 percent in terms of sales, contributing almost 30 percent to the Group's total sales for the first time. In this area, the company manufactures, among other things, molecular sieves for the production of medical oxygen.

But the company has also benefited from the pandemic in the Packaging Division. Among other things, CPH manufactures blister packaging.

The company is positive about the current year and expects sales to increase in all business areas. However, the development depends on the course of the pandemic and also on whether and to what extent the increased raw material prices can be passed on to the market. However, according to those responsible, the supply situation for some raw materials such as recovered paper should improve, which should lead to significantly higher profitability for the Paper Division. Both CPH Group's operating and net results are expected to reach mid-double-digit millions. The company also plans to invest around 50 million in property, plant and equipment to improve capacity and efficiency. For 2021, shareholders are to receive a dividend despite the loss, albeit a 50-centime lower one of 1.30 Swiss francs per share.

You can find the entire article here (in German).

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