Iberpapel posts €6.03 million net profit despite unprecedented circumstances
The gravity of the global pandemic induced by Covid-19 has implied the mass closure of offices, ministries, schools, etc. and has triggered a clear-cut contraction in demand for paper around the world.
Nevertheless, Iberpapel managed to defend its market position, registering a year-on- year decline in sales revenue of 24.12%. Revenue from the power generation side of the business also contracted by 24.88% year-on-year.
The Iberpapel Group’s businesses were included in Spain’s list of ‘essential’ activities, so that its operations continued throughout, albeit reducing production on occasion as most companies did. In the first half of 2020, the Group posted a net profit of €6.03 million, down 53% from the first half of 2019. Revenue amounted to €87.51 million, down 25.18% year-on-year, and EBITDA came in at €12.75 million, down 39.12%.
| (€ million) | 1H20 | 1H19 |
| Revenue | 87.51 | 116.97 |
| EBITDA | 12.75 | 20.94 |
| Profit after tax | 6.03 | 12.88 |
As part of Iberpapel’s plans for the modernisation of its mill in Hernani, the work on the new facilities will be completed at the end of July and they will be connected up to the existing facilities in the pulp mill, which will require a production stoppage of approximately 50 days that will, logically, affect the company’s second-half earnings.
Press release