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Mercer(MERC) - 2025 Q1 - Quarterly Results
MERCMercer(MERC)2025-05-01 20:51

Financial Performance - First quarter 2025 Operating EBITDA was 47.1million,down2647.1 million, down 26% from 63.6 million in Q1 2024 and 53% from 99.2millioninQ42024[2][5][16]−NetlossforQ12025was99.2 million in Q4 2024[2][5][16] - Net loss for Q1 2025 was 22.3 million (0.33pershare),comparedtoanetlossof0.33 per share), compared to a net loss of 16.7 million (0.25pershare)inQ12024andnetincomeof0.25 per share) in Q1 2024 and net income of 16.7 million (0.25pershare)inQ42024[2][14]−TotalrevenuesforQ12025decreasedbyapproximately80.25 per share) in Q4 2024[2][14] - Total revenues for Q1 2025 decreased by approximately 8% to 507.0 million from 553.4millioninQ12024,primarilyduetolowerpulpsalesvolumes[14]−Thepulpsegmentgeneratedrevenuesof553.4 million in Q1 2024, primarily due to lower pulp sales volumes[14] - The pulp segment generated revenues of 381.080 million in Q1 2025, compared to 432.404millioninQ12024,reflectingadecreaseofapproximately11.9432.404 million in Q1 2024, reflecting a decrease of approximately 11.9%[40] - Total revenues for Q1 2025 were 506.974 million, down from 553.430millioninQ12024,representingadecreaseofabout8.4553.430 million in Q1 2024, representing a decrease of about 8.4%[40] - Net loss for Q1 2025 was 22.339 million, compared to a net loss of 16.703millioninQ12024[46]−OperatingEBITDAforQ12025was16.703 million in Q1 2024[46] - Operating EBITDA for Q1 2025 was 47,088 thousand, a decrease from 63,601thousandinQ12024,reflectingadeclineofapproximately2663,601 thousand in Q1 2024, reflecting a decline of approximately 26%[55] Revenue Breakdown - Pulp revenues in Q1 2025 decreased by approximately 13% to 357.0 million from 408.3millioninQ12024,drivenbylowersalesvolumes[19][22]−Lumberrevenuesincreasedbyapproximately17408.3 million in Q1 2024, driven by lower sales volumes[19][22] - Lumber revenues increased by approximately 17% to 65.4 million in Q1 2025 from 55.9millioninQ12024,attributedtohighersalesrealizationsandvolumes[29]−Thesolidwoodsegment′srevenuesincreasedto55.9 million in Q1 2024, attributed to higher sales realizations and volumes[29] - The solid wood segment's revenues increased to 122.7 million in Q1 2025 from 119.0millioninQ12024,primarilyduetohigherlumberandmanufacturedproductsrevenues[28]−AverageNBSKpulpsalesrealizationsincreasedbyapproximately7119.0 million in Q1 2024, primarily due to higher lumber and manufactured products revenues[28] - Average NBSK pulp sales realizations increased by approximately 7% to 783 per ADMT in Q1 2025 from 732perADMTinQ12024[20]−AveragesalesrealizationsforlumberinQ12025were732 per ADMT in Q1 2024[20] - Average sales realizations for lumber in Q1 2025 were 499 per MMfbm, up from 460perMMfbminQ12024[42]CostManagementandSavings−Thecompanyistargetingapproximately460 per MMfbm in Q1 2024[42] Cost Management and Savings - The company is targeting approximately 100 million in cost savings by the end of 2026 through operational efficiency initiatives[5][7] - The company expects a reduction of inventories by 20millionandadecreaseincapitalexpendituresby20 million and a decrease in capital expenditures by 20 million in 2025[7] - The company expects higher per unit fiber costs in Q2 2025 due to continued strong demand, with a 12% increase in fiber costs noted in Q1 2025 compared to Q1 2024[32] Production and Operational Impact - Planned maintenance downtime at the Celgar mill impacted production volumes by 22 days, resulting in a loss of approximately 29,700 ADMTs in Q1 2025[11][24] - Lumber production in Q1 2025 was 128.0 MMfbm, slightly up from 127.0 MMfbm in Q1 2024[42] - The company has a consolidated annual production capacity of 2.1 million tonnes of pulp and 960 million board feet of lumber[37] Liquidity and Assets - Cash and cash equivalents as of March 31, 2025, were 181.5million,withtotalliquidityofapproximately181.5 million, with total liquidity of approximately 470.7 million[33] - Total assets as of March 31, 2025, were 2.336billion,anincreasefrom2.336 billion, an increase from 2.263 billion as of December 31, 2024[34] - Total assets increased to 2,336,167thousandasofMarch31,2025,upfrom2,336,167 thousand as of March 31, 2025, up from 2,262,932 thousand on December 31, 2024, representing a growth of approximately 3.2%[48] - Cash and cash equivalents decreased to 181,473thousandattheendofQ12025,downfrom181,473 thousand at the end of Q1 2025, down from 184,925 thousand at the beginning of the period, a reduction of about 2.5%[50] Debt and Liabilities - Long-term debt increased to 1,503,203thousandasofMarch31,2025,upfrom1,503,203 thousand as of March 31, 2025, up from 1,473,986 thousand at the end of 2024, representing an increase of approximately 2%[48] - Total current liabilities rose to 298,382thousandasofMarch31,2025,comparedto298,382 thousand as of March 31, 2025, compared to 256,538 thousand at the end of 2024, an increase of approximately 16.3%[48] Shareholder Information - A quarterly dividend of 0.075persharewillbepaidonJuly3,2025,toshareholdersofrecordonJune26,2025[35]OtherFinancialMetrics−Thecompanyreportedadepreciationandamortizationexpenseof0.075 per share will be paid on July 3, 2025, to shareholders of record on June 26, 2025[35] Other Financial Metrics - The company reported a depreciation and amortization expense of 40,355 thousand for Q1 2025, slightly down from 40,404thousandinQ12024[50]−Thecompanyexperiencedaforeignexchangetransactionlossof40,404 thousand in Q1 2024[50] - The company experienced a foreign exchange transaction loss of 8,418 thousand in Q1 2025, compared to a gain of 3,449thousandinQ12024[50]−Shareholders′equityincreasedto3,449 thousand in Q1 2024[50] - Shareholders' equity increased to 437,351 thousand as of March 31, 2025, up from $429,775 thousand at the end of 2024, reflecting a growth of approximately 1.3%[48]