DGAP-Adhoc

Cham Paper Group Holding AG: Dynamic revenue performance and clear-cut improvements in results

Cham Paper Group Holding AG / Key word(s): Half Year Results

21.08.2014 07:00

Release of an ad hoc announcement pursuant to Art. 53 KR
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- Dynamic revenue performance thanks to favourable market conditions and
successful products
- Significant improvement in results, EBIT margin climbs to 4.7%
- Continued transfer of technology to Italy planned for 2015
- Urban planning competition for "Papieri" site successfully completed
- Healthy balance sheet, equity ratio again exceeds 50%

The Cham Paper Group got off to an excellent start in 2014. The favourable
economic climate, the continued growth in demand for the strategic products
of all key product groups in all segments, and the positive perception of
the Cham Paper brand have led to favourable half-year results. To further
optimise the competitive strength of the Group's speciality papers, the
company has decided to continue the transfer of technology from Switzerland
to Italy and invest accordingly in the Italian mills, which will lead to
another increase in productivity there. Relocation of the coating
technology operations currently run from Cham for producing the digital
imaging and barrier papers is scheduled to take place in the first quarter
of 2015, and is expected to result in a further staff reduction of approx.
50 in Switzerland.

During the first six months, total revenue dropped to CHF 116.7 million as
a result of less profitable products being discontinued. The production of
speciality papers at both Italian mills increased by 6.0% to 70,729 tonnes,
resulting in a revenue increase of 12.4% to CHF 101.0 million. In
Switzerland, proceeds from the production of finished base paper increased
to CHF 15.7 million. In the Digital Imaging unit in Cham, growth amounted
to 18.7%. At CHF 5.5 million (EBIT margin of 4.7%), the operating result
achieved by the Group was significantly above that of the corresponding
period in the previous year (CHF 2.9 million, EBIT margin: 1.7%), that
still being affected by the demanding transformation phase. The net profit
of the first six months amounted to CHF 3.6 million.

Dynamic growth of core products in all markets
Consumer Goods: The demand for flexible packaging papers showed positive
trends thanks in part to a slightly improved economy in our primary market,
Europe. The single-sided coated papers for high-end packaging were
particularly in demand. Developments in our key Asian market was in line
with expectations, the papers for the tobacco market in China in particular