Sequana, owner of Arjowiggins and Antalis, has posted an 11% improvement in its first-half EBITDA despite difficult market conditions as it presses ahead with its financial and operational restructuring.

Group sales for the six months to 30 June 2014 rose 2.7% to $2.28bn, while EBITDA increased 11% to $90.2m. Sequana reported a net loss of $106m (H1 2013: $48m loss) after recording exceptional costs of $102, including restructuring costs of $87.5m.

    Meanwhile, the key components of the group’s debt restructure, including a $497 debt-for-equity swap that will more than halve consolidated net debt (from $968 to $471) and last month’s successful $87m rights issue, are well underway.

    Sequana chairman and chief executive officer Pascal Lebard said: “Sequana’s successful recent rights issue will help strengthen Arjowiggins’ capital and, alongside its financial restructuring, will ensure the company has a healthy, viable long-term balance sheet and financing for its transformation plan. This plan will have a positive impact on the Group’s performance as from the second half of 2015.”

    Antalis reported a 4.7% rise in sales to $1.72bn thanks to the circa $166m contribution of Xerox’s European office and digital papers business (acquired in November 2013), which offset the fall in printing and writing paper volumes and downward pressure on indent selling prices.

    Antalis also reported “robust growth” in its Packaging and Visual Communications business, which helped lift the group’s gross margin. EBITDA rose 4.3% to $51.2m, while recurring operating income moved up 7% to $34.12m.

 

Sister company Arjowiggins saw first-half sales slide 2.9% to €521m, chiefly due to the drop in printing and writing paper volumes, downward price pressure and negative currency impact (mainly due to the Brazilian real).