2016 was a successful year for the Heinzel Group
- Production volume increased to 1,370,214 t (+48%)
- Sales quantity improved to 4,085,827 t (+23%)
- Sales revenues raised by 19 per cent to EUR 1,763.3 million
- Income before special effects at the strong level of the previous year
- Production of packaging paper prepared in Laakirchen
Vienna, 31 March 2017. The Heinzel Group can again reflect upon a successful financial year in 2016 during which it was able to increase markedly both its production and trading volumes, and thus raise its consolidated sales revenues by 19.1 per cent to EUR 1,763.3 million. On the one hand, this strong growth resulted from the acquisition of Raubling Papier in January 2016 and on the other, from the positive business development in all of the group’s core companies.
At EUR 78.6 million, the 2016 operating result (EBIT) was below the EUR 94.2 million of the preceding year, which was influenced by high, extraordinary insurance proceeds. By contrast, despite lower prices, the group still emulated the strong operating income before special items result of 2015. Moreover, in view of full order books at the beginning of the year, the Heinzel Group also views the current 2017 financial year with optimism.
According to Kurt Maier, the Heinzel Group CEO: “The successful business result in 2016 represents further confirmation of our diversification strategy and underpins our most important decision during the year, which was the conversion of the PM10 in Laakirchen to containerboard production.”
Entry into the booming packaging paper business
With this investment of some EUR 100 million, the Heinzel Group has reacted proactively to the boom in packaging papers, which is driven by the increase in online retailing among other factors. In the late summer of 2016, preparations for the planned conversion work commenced and from autumn 2017, apart from 350,000 t of white magazine paper, the Heinzel Group location in Upper Austria will manufacture approximately 450,000 t of brown “starboard” paper. An additional 250,000 t of this environment-friendly containerboard is being manufactured by Raubling Papier which is already well-integrated into Heinzel Group and possesses the know-how vital to the production of this type of paper. The supply of raw material for the new product will be secured by recycled paper specialist Bunzl & Biach which is another Heinzel Group company and has gained in importance due to the integration of Chiemgau Recycling, which was acquired together with Raubling Papier.
The Industrial Business Area achieves new production records
In 2016, the Industrial Business Area raised its production by 48 per cent to 1,370,214 t and hence its segment sales revenues by 30 per cent to EUR 633.9 million. This leap in growth can be traced to both the initial consolidation of Raubling Papier and the resumption of full production at all the group’s locations following the damage to the mills in Pöls and Laakirchen in previous years.
As a result of sizeable increase in production quantities, Laakirchen Papier improved its sales revenues by 4 per cent to EUR 243.6 million, while Zellstoff Pöls delivered a consolidated sales revenue contribution of EUR 251.8 million, which was up by 37 per cent. The Estonian Cell pulp mill in the Baltic also demonstrated considerable growth, not only in the form of a new production record of 173,099 t, but also a 50 per cent rise in biogas output. However, owing to the lower sales prices, the mill’s revenues fell by 6 per cent to EUR 64.5 million. In its first year within the group, Raubling Papier also set a new production record of 215,926 t of recycled containerboard and contributed EUR 81.6 million to group sales revenues.
The Trading Business Area shows marked growth
During the past financial year, Trading Business Area sales rose by around 16 per cent to EUR 1,284.3 million. Apart from the initial full consolidation of the recycled paper specialist, Chiemgau Recycling GmbH, the main reason for this improvement was the positive business development shown by the globally active heinzelsales trading company, which in 2016 raised its sales volume by 21.5 per cent to 2,511,167 t and thus attained a new sales revenue high of EUR 644.0 million (2015: EUR 516.5 million). These record figures were facilitated by the opening up of new markets, especially in South America, and the expansion of sales cooperations. Overall, the thirteen national companies belonging to Europapier International achieved sales growth of around 3 per cent and contributed EUR 528.3 million to Heinzel Group consolidated revenues. The recycled paper specialist Bunzl & Biach was further considerably strengthened through the inclusion of Chiemgau Recycling and increased its sales revenue contribution by around 38 per to EUR 127.4 million.
More detailed information regarding the 2016 financial year is available from the Heinzel Group annual report, which can be found at www.heinzel.com/en/investor-relations/annual-report-2016/
The Heinzel Group
With its industrial locations Zellstoff Pöls AG (Austria), Laakirchen Papier AG (Austria), Raubling Papier GmbH (Germany) and AS Estonian Cell (Estonia), Heinzel Group, which is united under the Heinzel Holding umbrella, ranks among the largest producers of market pulp and magazine paper in Central and Eastern Europe. Since the beginning of 2016, containerboard has also belonged to the group’s range.
The group’s Trading Business Area includes Wilfried Heinzel AG, a globally active pulp, paper and board trading company, and Europapier International AG, the leading paper merchant in Central and Eastern Europe. In addition, Bunzl & Biach GmbH is the largest and most important waste paper company in Austria and the leading wholesaler in Central and Eastern Europe. The Heinzel Group’s successful growth is based on the fulfilment of the highest customer demands with regard to quality and efficiency.