Bong reports weaker demand for envelopes
| 18 May, 2017
Sales at European envelope and packaging manufacturer Bong declined to SEK 545 million (€56m) in the first quarter of 2017 from SEK 567 (€58m) during the same period in 2016.
The main reason for the drop in sales is the continued downturn in the envelope market, which resulted in both lower volumes and pricing pressures which had a negative impact on Bong’s gross earnings. Bong reports that during the first quarter of 2017, FEPE statistics shows that the European envelope market volume have decreased by approximately 3%. Bong’s estimation is that the market will decline approximately 5% during 2017.
“Earnings for the first quarter developed according to plan. It was also gratifying that the cash flow was strong and that the growth in light packaging continued. Our strategy, to increase the focus on light packaging while working on improving and making the envelope operations more efficient, remains,” says Bong’s CEO Håkan Gunnarsson.