Decline in envelope volumes eases
| 21 May, 2014
Envelope and packaging producer Bong has announced a positive first quarter following a decline of about 11 per cent in the European envelope market in 2013. The decline in the first quarter of 2014 was only 1 per cent, according to FEPE.
Bong’s assessment is that stock building at wholesalers after the short month of December, a favorable calendar effect given that Easter was in April this year, and a one-time mailing in Germany, in connection with the transition to the European payment system SEPA, have impacted the volumes over the previous year positively.
However, Bong’s consolidated sales in the first quarter were SEK 662 million (74 million euros) (677 in same period 2013). 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 and had a negative impact on Bong’s gross earnings.
"Since the end of last year, we have been working hard with the implementation of the new comprehensive action programme that will lead to greater cost efficiency and better margins for the Group. The work is progressing according to plan," says Bong's President and CEO Anders Davidsson."