In Q1 2019, Segezha Group’s revenue increased by 19.4% year-on-year to RUB 14.5 billion

OIBDA rose to 82.4% year-on-year and amounted to 4.0 bln RUB, OIBDA Margin was 27.4%, reported company’s press-service.

As Mikhail Shamolin, President and Chairman of the Board of Segezha Group, noted, “in Q1 2019, Segezha Group reached a record OIBDA margin of 27.4%, which is one of the highest in the forest industry in the world. This result was achieved, on the one hand, due to the growth of OIBDA year-on-year by 82.4%, on the other – due to the reduction of the Group’s expenses.

The Group’s revenue increased by 19.4% year-on-year and expenses – by 6.4%. It was possible to keep the cost of production at the level of last year, despite the increase in prices for raw materials and the influence of other external factors. One of the key cost containment factors was the reduction of fuel oil and electricity costs. The reduction of these costs was made possible by the launch of a multi-fuel boiler at Segezha pulp and paper mill, which works on bark waste instead of expensive fuel oil, as well as improving the energy efficiency of enterprises”.