Year-end report January-December 2018

2018 was a challenging year for the envelope industry since we experienced one of the most drastic paper price increases in recent history. Overall we were relatively successful in passing on those price increases to our customers and to maintain our gross margins. However in some cases we had to accept time delays due to long term customer contracts which negatively affected our gross profit in 2018. In my opinion Bong managed this tough year operationally better than its competitors. Currently we see first signs of an easing on the supply side situation since paper prices seem to have stagnated recently. In envelopes Bong developed better than the market in general last year. In light packaging the positive trend continued during 2018 with a sales increase of paper carrier bags by 47%. With further focus from our dedicated organization I am very much looking forward to 2019 and the light packaging development, says Bong’s new CEO Kai Steigleder.

October – December 2018

•  Net sales increased to SEK 603 million (578)
•  Operating profit before depreciation decreased to SEK 5 million (29)
•  Operating profit decreased to SEK -85 million (17)
•  Revaluation of goodwill amounts to SEK -76 million (0)
•  Non-recurring items in operating profit amounted to SEK -82 million (-5)
•  Earnings after tax amounted to SEK -123 million (8)
•  Revaluation of deferred tax assets amounts to SEK -17 million (0)
•  Earnings per share amounted to SEK -0.58 (0.03)
•  Cash flow after investing activities amounted to SEK -6 million (27)
•  The work to refinance Bong’s bond has been finalized

January – December 2018

•  Net sales increased to SEK 2,220 million (2,095)
•  Operating profit before depreciation decreased to SEK 71 million (91)
•  Operating profit decreased to SEK -52 million (45)
•  Revaluation of goodwill amounts to SEK -76 million (0)
•  Non-recurring items in operating profit amounted to SEK -77 million (-5)
•  Non-recurring items in the finance net amounted to SEK -11 million (0)
•  Earnings after tax amounted to SEK -148 million (-9)
•  Revaluation of deferred tax assets amounts to SEK -17 million (0)
•  Earnings per share amounted to SEK -0.71 (-0.06)
•  Cash flow after investing activities amounted to SEK -65 million (40)

Bong is one of the leading providers of envelope products in Europe and also offers solutions for distribution and packaging of information, advertising materials and lightweight goods. Important growth areas in the Group are packaging within retail and e-commerce and the envelope market within Eastern Europe. The Group has annual sales of approximately SEK 2.2 billion and about 1,400 employees in 12 countries.

Bong has strong market positions in most of the important markets in Europe and the Group sees interesting possibilities for continued development. Bong is a public limited company and its shares are listed on Nasdaq Stockholm (Small Cap).

For further information, please contact Kai Steigleder, CEO for Bong AB.  Tel (switchboard) 46 44-20 70 00   

This is information that Bong AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 16.00 CET on 14 February 2019. 

---