Heinzel Group Reports Respectable Result in Challenging Environment of 2020
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Heinzel Group announced that it recorded a "respectable result in the challenging environment of 2020 and created a good basis for further growth after completely freeing itself from debt."
Heinzel Group increased production in both the paper and pulp segments in the 2020 financial year, with total production rising to 1,607,030 metric tons in 2020. The growth in paper volume is attributable to the first full year of operation of the PM3 in Pöls, which specializes in low-grammage kraft paper, and the excellent performance of the PM10 in Laakirchen, which produced more containerboard than in the previous year.
Total sales volume amounted to 3.7 million metric tons and was slightly lower than in 2019 due to the corona pandemic.
Coupled with lower market prices, Heinzel Group's net sales consequently declined to EUR 1,611.7 million.
Although lower wood prices and large-scale savings measures had a positive effect, Heinzel Group's EBITDA, at EUR 126.0 million, fell to the level of 2017. The group's EBIT decreased to EUR 57.7 million and net profit for the year to EUR 39.9 million.
Against this backdrop, Heinzel Group was able to completely free itself from debt and increase the equity ratio to 59.2%.
Optimistic Outlook for 2021
Significant price increases for nearly all paper and pulp qualities since the beginning of the year gives Heinzel Group reason to view the year 2021 with optimism despite an increase in raw material prices. The management assumes that the economic environment will improve substantially in the course of the year based on the successful fight against the coronavirus, and expects the group to benefit from the economic recovery thanks to its global presence and its diversified product portfolio.
Sebastian Heinzel Joins Management of Heinzel Holding
Heinzel Group also announced that Sebastian Heinzel joins the management of Heinzel Holding with immediate effect. Along with CEO Kurt Maier and CFO Barbara Potisk-Eibensteiner, Heinzel will be responsible for strategy, M&A and sales in his role as Chief Strategy Officer. In a dual function, Heinzel will remain CEO of Heinzelsales, the global sales network of Heinzel Group.
