International packaging, pulp and paper producer Sappi’s profit in the third quarter of financial 2017 to the end of June rose appreciably to S$58m from $32m in the period in 2016. This came as the group paid down net debt to $1.3bn from about $1.6bn a year ago. "I am pleased to report that during the past quarter Sappi delivered profits up 81% from a year ago and reduced debt by a further 17% year on year," Sappi CEO Steve Binnie said on Thursday. "We also repaid $400m in bonds from cash reserves, which will generate savings of about $21m per annum on our net interest charge." Binnie said the third quarter was Sappi’s weakest due to the slowdown in business activity during northern hemisphere summer holidays. Sappi also used this period for big annual maintenance shutdowns. "A major focus for Sappi ... was debt reduction. It has done well in this regard," said Mish-al Emeran, an equity analyst at Electus Fund Managers. The quarter’s earnings before interest, tax, depreciation and a...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.