Flexible packaging papers shine for Cham

Cham Paper Group said specialty papers for flexible packaging were a highlight in mostly negative results for the full-year 2011.
 
Cham Paper develops, produces and distributes coated specialty papers worldwide. It manufactures papers for packaging and labels in its Consumer Goods division; release papers for films, tapes or labels, and backing papers for industrial casting and lamination processes in its Industrial Release unit; and inkjet and sublimation papers for large format print within its Digital Imaging operation.
 
Overall net revenue in 2011 fell to CHF309.3 million (€255.5 million) from CHF339.5 million (€280.4 million) in 2010, while operating profit fell from CHF8.4 million (€6.9 million) to an operating loss of CHF8.1 million (€6.7 million). Net losses for the full-year accelerated from CHF1.8 million (€1.5 million) in 2010 to CHHF92.1 million (€76 million) in 2011.
 
Cash flow remained stable year-on-year, while net debt increased by around 30 percent. Sales volumes fell from 204,126 tonnes to 198,978 tonnes.
 
Consumer Goods accounted for 52 percent of revenue and put in an ‘extremely favorable showing’ in 2011, particularly with regard to specialty papers for flexible packaging applications, Cham said. Sales of specialty papers for flexible packaging achieved growth in excess of 10 percent year-on-year, the company said. Tobacco papers also saw increased demand, primarily from Asian markets.
 
Both Industrial Release and Digital Imaging performed poorly over the year, with Cham withdrawing from a number of markets and stating that the ‘depressed mood in Europe was perceptible’. However, like specialty papers for flexible packaging in its Consumer Goods segment, both Industrial Release and Digital Imaging had standout products. Glassine papers from the Industrial Release Condino mill showed strong growth, while Transjet papers for textile printing showed double-digit growth within Digital Imaging.