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Prosperity 2019 – at a glance

Our management approach
We can only create value for stakeholders from a strong foundation of Prosperity. Our ability to meet our People and Planet commitments depends on continued profitability. Accordingly, our 2020Vision is for Sappi to be a diversified woodfibre group, targeting a substantial increase in EBITDA through an expanded product portfolio with increased margins, providing enhanced rewards to all its shareholders.

Key financial developments

EBITDA

(excl special items)

US $687 million

(FY18 US$762 million)

Profit

 

US $211 million

(FY18 US$323 million)

EPS

(excl special items)

US 44 cents
Net debt

 

US $1,501 million

(FY18 US$1,568 million)

SEU
Produces 50% of group sales

10 production facilities
14 sales offices

SNA
Produces 25% of group sales

3 production facilities
6 sales offices

SSA
Produces 25% of group sales

5 production facilities
6 sales offices
516,000 ha plantations

Key operational and market developments

  • Weak graphic paper markets and DWP prices, driven by ongoing trade wars and slower economic growth in various geographies
  • Continuing trend towards paper-based packaging in consumer segments
  • Recent projects to increase capacity at each of the DWP mills and convert capacity at Somerset and Maastricht Mills to packaging boosted sales volumes in these segments during the year
  • Impact of uncertain market conditions and low DWP demand being mitigated by tighter working capital management as well as postponing and reducing discretionary capital
  • Temporary halt to dividends until market conditions improve
  • Downtime at certain mills (SEU and SN
  • Acquisition of Matane Mill in Canada (shortly after year-end).

Saleable production increased slightly in SNA and SSA, but decreased in Europe, partly due to downtime at some mills.

NOTE: The information on the following pages aims to give a snapshot of our financial performance in 2019. A detailed review appears in our 2019 Annual Integrated Report.