Business News

Paloma ends a tough 2018 with EUR 3.6 million net loss

Sladki Vrh, 28 August (STA) - Paloma generated EUR 82 million in revenue last year, down 3% year-on-year, while posting a net loss of EUR 3.6 million. The annual report published on Wednesday notes that 2018 was one of the most demanding years in the tissue maker's history as the prices of cellulose increased by more than 25%.

Last year's revenue was 10% lower than planned, as was the actual volume of productions, which stood at 61,500 tonnes.

Chairman Jaroslav Fic explains in the report that the demanding situation related to the higher prices of cellulose was mitigated by the improved sales conditions and internal austerity measures, focused on procurement and operating costs.

In cooperation with its owner, SHP Group, the Slovak group which is in turn owned by the Czech financial fund Eco Investment, Paloma managed to cut the costs for the purchase of cellulose by EUR 2 million compared to the period when it did this on its own.

Last year, Paloma spent almost EUR 1.6 million on investments, including in a new high-capacity paper machine, which is expected to make it a major development and production centre for tissue paper in Southeast Europe, the report says.

The new machine, which is expected to be launched next year, is also expected to improve the quality of products and reduce maintenance costs and energy consumption, according to Fic.

This year, the company employing almost 600 people plans to generate EUR 91 million in net sales revenue and make almost EUR 2.2 million in earnings before interest, taxes, depreciation and amortisation (EBITDA).

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