Navigator profits at €50.6 million in Q1

The Navigator Company which produces premium quality paper has seen its profits increase 115% to €50.6 million.

The result was achieved by selling less paper and paper paste but at prices that were substantially higher, and despite increases in costs. However inflationary pressures will continue to be felt in the coming months.
“We are seeing increased costs in raw materials across the board, namely chemicals, energy and logistics”, states the company. “These constraints have got worse and Navigator is managing this unfavourable trend by increasing efficiency and boosting productivity, offsetting the increase in variable costs by containing consumption and fixed costs”, states the company in a communiqué to the market.
Revenues in the first quarter grew 44% on the same period in 2021, and 3.4% on the previous quarter. The results were sustained by an increase in prices, while the turnover in sales of paper paste fell 1% like-for-like and 9% quarter-on-quarter. Paper sales fell 3% and 17% respectively. The latter was hammered by logistical constraints and the need to replenish stocks.
The average price of paper paste (PIX BHKP Index) increased 48% in US dollars and 58% in euros like-for-like, and 1% in US dollars and 3% in euros compared to the fourth quarter of 2021. Paper went up 28% and 15%.
“The market dynamic was affected by reduced capacity in Europe and the United States and reduced offer in the Middle East and African markets in a period in which demand for printing and writing paper grew 0.6% (to February)” states the company.
Looking to the future, the company led by António Redondo stresses “the (upward) increase in costs continued to be one of the main concerns. During the first quarter, Navigator benefited from contracts in which prices were fixed in 2021 but inflationary pressures will continue to be felt in the company’s activity.”