Packaging Corporation of America’s (PCA) Boise paper division has reported a significant jump in Q2 operating profit and EBITDA.
In the three months ended 30 June 2022, Boise achieved adjusted operating profit of $26.2 million compared with $5.4 million in Q2 2021. Adjusted EBITDA increased from $11.6 million 12 months ago to $31.5 million.
The jump in profits came as paper volumes sold declined by 17,000 tons year on year, with sales growing by around 5.3% to $149.8 million. A scheduled maintenance outage at the International Falls mill didn’t take place due to flooding in the area, and has now been planned for the current quarter.
For the first six months of the year, Boise’s revenue was $303.3 million, about 1% lower than in 2021. At the same time, adjusted operating profit more than trebled to $50 million while adjusted EBITDA was up by over 50% to $60.4 million.
Despite the strong uptick in margins, PCA continues to raise paper prices. On 25 July, it notified customers of an additional $60 per ton increase on all grades, effective September 6.
PCA’s Packaging division also posted excellent Q2 results. Revenue grew by around 17% to $2.1 billion and adjusted EBITDA jumped by almost 29% to $525 million.