Second quarter results
for the period ended March 2024

Second quarter financial results conference call

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“Sappi is a leading global provider of everyday materials made from woodfibre-based renewable resources. As a diversified, innovative and trusted leader focused on sustainable processes and products, we are building a more circular economy by making what we should, not just what we can.”

Our raw material offerings (such as dissolving pulp, wood pulp, biomaterials and timber) and end-use products (packaging papers, speciality papers, graphic papers, casting and release papers and forestry products) are manufactured from woodfibre sourced from sustainably managed forests and plantations, in production facilities powered, in many cases, with bio-energy from steam and existing waste streams.

Together with our partners, Sappi works to build a thriving world by acting boldly to support the planet, people and prosperity.

Highlights for the quarter

EBITDA excluding special items

US$183 million
(Q2 FY23: US$167 million)

EPS excluding special items

12 US cents
(Q2 FY23: 11 US cents)

Net debt of

US$1,366 million
(Q2 FY23: US$1,225 million)

Closures of Stockstadt and Lanaken Mills were completed

  Quarter ended Half-year ended
  Mar 2024 Mar 2023 Dec 2023 Mar 2024 Mar 2023
Key figures (US$ million)          
Sales 1,352 1,442 1,272 2,624 3,102
Operating profit (loss) excluding special items(1) (4) 116 101 86 202 326
Special items – loss (gain)(2) (4) 46 (7) 179 225 (13)
EBITDA excluding special items(1) (4) 183 167 156 339 457
Profit (Loss) for the period 29 69 (126) (97) 259
Basic earnings per share (US cents) 5 12 (23) (17) 46
EPS excluding special items (US cents)(3) 12 11 8 20 41
Net debt(3) 1,366 1,225 1,216 1,366 1,225
Key ratios (%)          
Operating profit (loss) excluding special items to sales(4) 8.6 7.0 6.8 7.7 10.5
Operating profit (loss) excluding special items to capital employed (ROCE)(3) (4) 13.0 10.7 9.8 11.2 17.9
EBITDA excluding special items to sales(4) 13.5 11.6 12.3 12.9 14.7
Net debt to EBITDA excluding special items(4) 2.2 1.0 2.0 2.2 1.0
Covenant leverage ratio(3) 2.3 0.9 2.0 2.3 0.9
Interest cover(3) 9.9 16.3 9.8 9.9 16.3
Net asset value per share (US cents)(3) 387 447 404 387 447
(1) Refer to note 2 to the group results for the reconciliation of EBITDA excluding special items and operating profit excluding special items to operating profit by segment and profit for the period.
(2) Refer to note 2 to the group results for details on special items.
(3) Refer to supplemental information for the definition of the term.
(4) The definition of special items has been amended from fiscal 2024 to exclude the price fair value adjustment of plantations, which was previously included as part of special items. The price fair value adjustment of plantations is therefore included in the current year's EBITDA excluding special items and operating profit (loss) excluding special items. The prior year comparatives for special items continue to include the price fair value adjustment of plantations.

Sales by product* (%)

Sales by destination* (%)

Sales by source* (%)

Net operating assets** (ex corporate) (%)

* For the period ended March 2024.

** As at March 2024.