US-based speciality paper products manufacturer Neenah has reported a 67% rise in net sales to $269.3m in the second quarter of this year, as against $161.4m a year earlier.
Sales across the company’s Fine Paper and Packaging segments increased to $89.7m in the quarter, a 48% increase from $60.8m in the same quarter of last year.
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Increasing demand for premium packaging and consumer products in the quarter resulted in a 10% rise in sales compared to the prior-year period.
For the six months ending on 30 June, the company’s consolidated net sales grew by 26% to $496.3m, compared to $101.3m in the first half of last year.
This increase in sales was driven by the robust organic volume growth, the company’s acquisition of Spanish packaging company Industrias de Transformacion de Andoain’s (Itasa) and favourable currency effects.
In March, the company agreed to acquire Itasa’s parent company, Global Release Liners, for a €205m ($247m) cash consideration.
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By GlobalDataNeenah CEO Julie Schertell said: “Neenah’s sales momentum continued in the second quarter and demand for our products is strong, with improving conditions in our end-markets, share gains and new product wins with key customers.
“Like most companies, we are facing pressures from rising input costs and supply chain disruptions, and we have taken pricing and other actions to address this challenging environment. We expect to offset these impacts over time, as we have demonstrated historically.
“We also took several strategic steps in the quarter to drive revenue growth and margins, including the successful acquisition of Itasa, [the] announcement of $13m of new capacity for the release liner business to support continued growth, [the] restarting of an idled asset to support demand in Fine Paper and Packaging, and the closure of the Appleton facility, from which we expect approximately $7-8m [a] year profit improvement.”
