Our approach to Prosperity
The information on the following pages aims only to give a snapshot of our financial performance in 2018. A detailed review can be found in our Annual Integrated Report
Our management approach
Our ability to deliver value creation for our shareholders by focusing on Prosperity through improved profit, strategic positioning and debt reduction, lies at the heart of our commitment to sustainability.
Our industry stands on the cusp of renewal as plantation- and forest-derived bioproducts emerge as a global game changer in a carbon constrained future. The success of our drive to adapt our business to these and other global megatrends that are reshaping the world around us was evident in our financial performance over the past year.
Through intentional evolution, we are growing Sappi into a profitable and cash-generative diversified woodfibre group based on the following:
- Selective capital spending in adjacent, growing and more profitable businesses, and
- Continuing to generate cash from our paper business to fund growth in:
- Cellulose-based solutions
- Specialities and packaging papers, and
- Adjacent products.
Going forward, we will continue to accelerate value for shareholders through debt reduction, improved profit and strategic positioning.
Saleable production (adt/a)
Comment: Saleable production (adt/a)1
In global terms, production was stable. In SEU, although most of the mills had a full order book in Q1 – Q3, production figures lowered due to a weaker market in Q4. There was a slight decrease in SNA, due to the PM1 rebuild and operational issues (boiler pH excursion) at Somerset Mill. In SSA, there was a slight increase, with paper production above business plan. However, dissolving wood pulp (DWP) production was negatively affected by new equipment installation issues associated with the DWP debottlenecking projects at Ngodwana and Saiccor Mills. These projects, due to be fully completed shortly after year-end, will add 50,000 tons of additional capacity at the two mills.