Heinzel Group achieves record results in 2018

  • Sales revenues up 14% to EUR 2.1 billion
  • EBIT (EUR 195 million) and net income (EUR 145 million) more than doubled
  • Net debt further reduced despite investments of EUR 127 million and acquisitions

Vienna, 3 April 2019. In 2018, Heinzel Group recorded the best result in its history. In addition to the positive market price development, it was above all the record output of roughly 1.6 million metric tons in the group’s mills that caused net revenues to increase from EUR 1.8 billion to roughly EUR 2.1 billion. The group thus surpassed the EUR 2.0 billion revenue mark for the first time in 2018.
 
The group’s operating result (EBIT) of EUR 194.8 million (2017: EUR 73.6 million.) is primarily attributable to strong production, high market prices for paper and pulp, and low recycled paper costs. On this basis, net income, at EUR 145.0 million, also significantly exceeded the prior-year level (EUR 55.0 million).
 
Acquisitions lead to growth in the Trading Business
Along with this strong operating development, Heinzel Group also expanded its field of activity again in 2018: To strengthen its global presence, heinzelsales acquired a trading company in Malaysia in the past year. Europapier took over Moderne Verpackung Hoffmann, a specialist for industrial packaging solutions, while Bunzl & Biach secured its future supply with recycled paper by acquiring further shares in companies in Eastern Europe.
 
Extensive investments in the Industrial Business
Heinzel Group also continued to pursue its investment strategy. Overall, the group invested roughly EUR 127 million in 2018, of which the majority was related to the Austrian mills in Pöls (construction of the new PM3 specializing in kraft paper3) and Laakirchen (completion of the conversion of the PM10 to containerboard). In addition, an aerobic wastewater treatment plant was established at the mill in Estonia.
 
Outlook
Heinzel Group will continue its organic growth in 2019. The PM3 in Pöls will have started operations by mid-year and the first step of the planned capacity expansion at the Estonian pulp mill should be finalized by then. Other plans provide for a further capacity increase for graphic paper on the PM11 in Laakirchen and a production increase on the PM7 in Raubling. In the Trading Business, the focus will be on the integration and the further development of the companies acquired in 2018 as well as overseas sales of the additional volume of the group’s own production.
 
 
Further information regarding the developments of the 2018 financial year can be found in the Annual Report of Heinzel Group at www.heinzel.com/2018
 
HEINZEL GROUP
Heinzel Group, which is united under the Heinzel Holding umbrella, is one of the biggest producers of market pulp and packaging papers in Central and Eastern Europe with its industrial locations Zellstoff Pöls, Laakirchen Papier (both Austria), Raubling Papier (Germany) and Estonian Cell (Estonia). Magazine paper rounds off the group’s range. Its trade area includes heinzelsales, a globally active pulp, paper and board trading company, and Europapier International, the leading paper wholesale company in Central and Eastern Europe. In addition, Bunzl & Biach is the largest and most important recycled paper company in Austria and a top wholesaler in Central and Eastern Europe. Heinzel Group’s successful growth is based on meeting the highest customer demands with regard to quality and efficiency.

For enquiries please contact:
 
Kurt Maier
Telephone +43-1-260 11-490
office@heinzel.com
 
Heinzel Holding GmbH
Wagramer Strasse 28–30
1223 Vienna
Austria
www.heinzel.com

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