Sappi suffers profit slump as debt burden grows to R28bn

Source: Fin24

The paper and packaging producer Sappi has reported a grim set of results for the three months to end-December, with sales down 8% to $1.3-billion. Its profit slumped, with headline earnings down 73%.

Its net debt rose by 23% to $1.9 billion (R28 billion), in part due to the acquisition of a Canadian pulp mill.

Sappi’s share price was up almost 2% at the start of trading after the announcement, but continues to trade around its lowest level in six years.