CPH forecasting higher profit
Perlen - The CPH Group is expecting a stronger first half-year than previously forecast. With its three business divisions of Chemistry, Paper and Packaging, the company in the canton of Lucerne projects an EBIT of around 50 million Swiss francs and an increase in the net result.
The CPH Group is raising its profit forecast for 2022. In a press release, the company reported strong order volumes and higher sales prices. As a result, net sales have increased in all three business divisions and are expected to total around 360 million francs in the first half-year.
The greatest net sales growth has been in the Paper division. Following its negative prior-year earnings result, it is expected to post an EBIT (earnings before interest and taxes) of more than 30 million francs for the first half of 2022. The improvement is partly due to lower depreciation needs following the impairment to the division’s assets at the end of 2021. This business division benefited from a months-long strike at a competitor and a reduction in European paper making capacities.
The Packaging division has also improved its EBIT compared to the previous year and is on track to record a double-digit-million EBIT result for the first half of 2022. With the Chemistry division also reporting favorable business trends, Group EBIT for the period is expected to amount to around 50 million francs. CPH also writes the net Group first-half result is likely to be of similar dimensions, excluding “extraordinary factors”. “But should the general environment not take a turn for the worse, we expect to achieve an EBIT and a net result for 2022 that are both in the high double-digit millions,” commented Peter Schildknecht, CEO of the CPH Group.
