Rottneros as an investment
Rottneros’ shares have been listed on Nasdaq Stockholm, Basic Resources on Mid Cap, since 1987. Over the past five years (2018-2022), the share price has risen by 80%, but there are still more reasons to invest in Rottneros.
Part of the green transition
Together with the entire forest industry, Rottneros is part of the green transition to a circular economy, with solutions that have a positive effect on the environment and climate.
Pulp is replacing fossil-based raw materials, and is used for the production of renewable products. Rottneros’ goal is to achieve fossil-free production by 2030.
Rottneros focuses on areas of use where our products create added value. By increasing production volumes, we counteract cost inflation.
The investment in moulded fibre trays gives a broadened revenue base, which reduces exposure in the long run to the pulp market. In 2022, EBIT was MSEK 550, corresponding to an EBIT margin of 18%.
Over time, the Group has maintained a strong equity/assets ratio and debt/equity ratio. The equity/assets ratio for 2022 was 66% thanks to good profitability and a reduced debt burden. Net cash was MSEK 354 and cash flow from operating activities amounted to MSEK 541.
Rottneros’ policy is to distribute 30%-50% of net profit to the shareholders. The dividend for 2022 to shareholders was SEK 1.40/share. Total return including appreciation for 2022 was +23%. This compares with the average total return on the Stockholm Stock Exchange according to OMX Stockholm GI in the same year, which was -22%.
A market with conditions for long-term growth
Several global trends show that pulp markets have the right conditions for long-term growth. One example is the transition from plastic to fibre-based packaging. The potential to expand within our selected niche markets is great, and Rottneros is already the world leader today in E-pulp and filter pulp, and has groundbreaking skills in the development of eco-friendly fibre-based food trays.