After a record year: CPH suffers decline in sales and profits

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Net sales fell 14 percent to 624 million francs, following a record increase of 46 percent last year, according to the company’s annual report on Tuesday. The operating result at the EBITDA level reached 83 million francs, after 112 million francs in the previous year

The result was a net profit of 79 million francs; This corresponds to a decrease of almost 22 percent. Shareholders are now required to receive a dividend of 4.00 francs per share. Overall, CPH’s results missed analysts’ expectations in terms of sales, beat them in terms of EBIT, and met them in terms of profits and dividends.

In individual departments, the paper business, which had recently grown significantly, again fell sharply. The only paper mill in Switzerland sold newspaper and magazine paper for 262 million francs; this was almost a third less than the previous year. Volumes also dropped slightly.

CPH stated that in the packaging industry, systems are still operating close to capacity limits. Sales increased by approximately 3 percent, reaching 237 million francs, breaking a new record. Pharmaceutical customers’ purchasing behavior returned to normal after the pandemic.

Its smallest chemicals division increased sales by nearly 13 percent to 124 million francs. It is stated that molecular sieves for the industry and energy sectors, as well as deuterium products for the pharmaceutical sector, will continue to be in demand in 2023. However, demand from the construction and medical sectors decreased.

In 2024, the company faces many uncertainties. Lower sales are expected at the group level.

The operating result for the paper division is likely to be negative “due to a sharp decline in demand.” The chemical and packaging sectors will no longer be able to reach 2023 values. Overall, operating and net results for the current fiscal year are likely to be in the double-digit million range, it said. (SDA)

Source :Blick