The Swedish packaging manufacturer Billerud AB recorded mixed business development in its two core regions in the first half of 2025.
In North America, the company once again achieved a very strong quarterly result. At SEK 622 million, EBITDA in the region reached a margin of SEK 22 % - the highest figure since the fourth quarter of 2022. Capacity utilisation at the mills increased to 76 %. The graphic paper business in particular, especially coated freesheet reels, benefited from rising prices and growing sales volumes.
In Europe By contrast, the downward trend continued in the Netherlands. Net sales in the region fell by SEK 3 % in the second quarter (adjusted for currency effects), while EBITDA halved to SEK 333 million (previous year: SEK 630 million), which corresponds to a margin of just SEK 5 %. According to the company, the reasons for this are weak demand - particularly in the Asian market for liquid packaging - and a changed trading environment due to import duties. In addition, scheduled maintenance downtime had a negative impact of around SEK 380 million on earnings.
Despite the challenges, Billerud was able to increase the Group's operating profit: Operating profit increased by SEK 33 % to SEK 826m in the first half of the year (previous year: SEK 619 million). Sales grew slightly by SEK 1 1TP3 thousand to SEK 21.345 billion, while consolidated net income increased by SEK 25 1TP3 thousand to SEK 470 million. Cash conversion improved significantly in the second quarter to SEK 131 1TP3 thousand, supported by strict working capital management and reduced inventories.
The strategic transformation programme „Evolution“ in the USA, which envisages a shift towards packaging materials, is making better progress than planned, according to the company. The first test batches of the new US paperboard material have been sold. The target of marketing 15,000 tonnes of paperboard in 2025 is expected to be exceeded. The conversion of the Escanaba plant is also proceeding according to plan.
For the third quarter, Billerud expects stable market conditions in North America, but continued uncertainty in Europe. The first signs of falling timber prices in the Nordic countries could relieve the cost side in Europe in future. Overall, the company believes it is well positioned - with a focus on cost discipline, cash flow and a selective strategic approach.
Outlook and risk assessment
The company remains cautious in its outlook: the geopolitical situation and new trade barriers in Europe and Asia continue to weigh on the market environment. At the same time, Billerud is benefiting from the increasing interest in US products as a result of American import tariffs. The company also points to its solid financial position, stable debt (net debt/EBITDA: 1.1) and reduced investment requirements.
Source: Billerud
