Bong: Strong packaging growth but margin squeeze in envelopes
Research Update
2018-11-23
07:30
The third quarter was very much in line with our estimates in terms of total sales and earnings. Sales increased by 9 percent Y/Y, mainly thanks to currency tail winds. EBIT of SEK 12 million is a significant improvement Y/Y. Compared to earlier this year, EBIT-level is virtually unchanged. Bongs Light Packaging recorded surprisingly strong sales growth in the quarter: 22 percent and 14 percent adjusted for currency effects. In the envelope business paper prices are still on the rise putting pressure on gross margins.
HA
VW
Henrik Alveskog
Viktor Westman
Disclosures and disclaimers