Rottneros’ interim report January–September 2025
Lower turnover and profit in a challenging market
NET TURNOVER dropped by 16 percent to 574 (685) MSEK. The weak CTMP market resulted in lower sales volumes. At the same time, selling prices denominated in foreign currency fell, and the Swedish krona strengthened especially against the USD.
THE NET PRICE of NBSK in SEK was 18 percent lower compared with the third quarter of 2024 and the price of CTMP was 15 percent lower. Compared with the second quarter of 2025, prices in SEK were around 2 percent lower.
VOLUME PRODUCED amounted to 72,900 (90,600) tonnes. Production of sulphate pulp was slightly lower than in the third quarter of 2024. Production of CTMP was limited due to weak market conditions.
SOLD VOLUME totalled 76,300 (82,100) tonnes. Demand for sulphate pulp within Rottneros’ prioritised niches has been good and sales rose by 8 percent. At the same time, CTMP sales fell by 36 percent.
EBITDA was -21 (70) MSEK, affected by lower sales prices, lower deliveries and a stronger SEK. Wood prices remain higher than in the corresponding period in 2024.
NET INCOME for the quarter totalled -52 (28) MSEK.
BALANCE SHEET: The equity/assets ratio was 63 (60) percent and available liquidity amounted to 406 (258) MSEK. Net debt totalled 273 (202) MSEK.
CASH FLOW from operating activities for the first nine months amounted to -70 (80) MSEK. Investments amounted to 102 (310) MSEK.
UPDATED LOAN AGREEMENT which includes a liquidity covenant and a profitability target temporarily replacing the original debt covenant.
THE RIGHTS ISSUE that raised approximately 300 MSEK for the company was completed in July.
Comments by the CEO
Challenging market entails continued cost focus
The weak market development during the third quarter was disappointing, and our financial performance was marked by a continued unsatisfactory result. Despite the currently challenging market conditions, I am pleased to note that we continue to deliver in line with our targets for the factors within our control, particularly cost efficiency and high production availability.
The continued stable demand within our niches for chemical softwood pulp is also a sign of strength. The rights issue, which was successfully completed in July, further strengthens our position as we face continued challenging times. The high pulp wood prices have started to decline, which is encouraging for the industry’s long-term profitability prospects.
The cost savings we have implemented to counter the negative market developments were largely completed during the summer and will, as planned, have their full effect from the fourth quarter. The cost base is affected by 35–40 MSEK on an annual basis.
The rights issue strengthens our balance sheet
The rights issue, which we successfully completed in July, provides us with a strong position to manage the challenging market climate. The equity/assets ratio at the end of the quarter amounted to 63 percent, which is above the long-term target of at least 50 percent. Our available liquidity increased through the issue by just over 200 MSEK to 406 MSEK as of 30 September, after amortisation of long-term loans and transaction costs. I would like to take this opportunity to thank our shareholders for their strong support and confidence shown during the process.
Reduced tied-up capital with further improvement potential
As a further improvement of the capital structure, we are working to reduce tied-up capital. At the end of the quarter, working capital amounted to 556 MSEK, a decrease of 66 MSEK compared with the end of June. We are working hard to further reduce tied-up capital going forward.
We deliver on the factors we can influence ourselves
We continue to maintain a clear focus on the factors we can influence ourselves and consistently deliver at a high level in relation to them. Although production at Vallvik Mill decreased slightly compared with the corresponding quarter last year, the mill has operated at a high and stable level since the beginning of the year.
At Rottneros Mill, volumes continue to be constrained by the adjustments required under the current weak market conditions for mechanical pulp. We are prioritising the profitable markets in Europe. During the quarter, capacity utilisation fell to just over 50 percent. At the same time, the capacity investments are achieving their established targets and the production rate is very high when the mill is allowed to operate at full capacity. The mill is thus an efficient and highly competitive producer of mechanical pulp. We are also undertaking several initiatives involving new products to address new markets and applications within mechanical pulp.
Stable demand for sulphate pulp within our niches
Market conditions were weak during the quarter. Following a brief upturn at the beginning of the year, prices gradually weakened, mainly due to the negative global consumption trend and the resulting increase in producers’ inventories of softwood sulphate pulp. At the same time, we are seeing stable demand within our niches, and many customers continue to increase their volumes. The net price for NBSK decreased by 9 percent in USD between the second and third quarters. The net price for CTMP in USD remained stable.
Favourable market balance for pulp wood, prices have turned downwards
Wood prices remain at an unsatisfactorily high level and are one of the main reasons for our weak performance. However, we are seeing strong indications that the market balance has shifted in our favour as buyers. Increased supply, combined with reduced demand, has led to a downward trend in prices. This will be reflected in our results with a delay of a few quarters.
Packaging project in Poland scaling up step by step
Our project for large-scale production of molded fiber trays in Poland, in partnership with Arctic Paper, continues to scale up step by step. Several customer qualification processes are currently under way, and we are approaching full-scale commercial production. Interest in our sustainable food packaging remains very strong.
In closing, I would like to express my gratitude to all my colleagues for their strong dedication to Rottneros in these challenging times. I would also like to thank our owners, the Board, our customers and suppliers for their excellent cooperation.
Lennart Eberleh
President and CEO
(For full report, see attached pdf)
This information is such information that Rottneros AB is required to disclose in accordance with the EU Market Abuse Regulation and the Securities Market Act. The information was submitted for publication on 30 October 2025 at 07.30 by the contact person below. This report has been prepared in both a Swedish and an English version. In the event of deviations between the two, the Swedish version shall prevail.
__________________________________________________________________________________
Reminder:
Invitation to Rottneros’ presentation of interim report Q3 2025
All participants can follow the presentation via the web link:
Rottneros - Q3 Presentation 2025 - Finwire
The presentation will be held in English. Questions can be asked in English or Swedish via the link in advance or during the presentation.
You can also watch the presentation afterwards on Rottneros’ webpage.
For further information please contact:
Lennart Eberleh, President and CEO
+46 (0) 270 622 65, [email protected]
Monica Pasanen, CFO
+46 (0) 270 622 70, [email protected]