In its annual report for the year ended 31 December 2022, released today (28 April), the Spain-headquartered papermaking group achieved revenue of €1.91bn (£1.68bn) for the year, up 42.4% on the €1.34bn it recorded in 2021.

Lecta’s net sales of paper increased by 44.6%, from €1.2bn in 2021 to €1.73bn, which was attributed to higher sales of CWF paper, Specialties, and Purchased Products. The group recorded an increase in average net sales price of €498 per tonne in 2022 compared to 2021.

Its sales of energy increased by 23%, from €144m in 2021 to €177m in 2022. The group recorded an increase in average net sales price of €97/MWh, or 76%, in 2022 compared to the prior year.

EBITDA increased by 185%, from €57m in 2021 to €164m in 2022. This increase was the result of lower sales of paper in volume, higher sales prices, and higher margin on variable costs, partly offset by higher fixed costs.

The figure included the €38.6m compensation received as a consequence of the anticipated termination and renegotiation of gas purchase agreements in Spain with the current supplier.

A pre-tax loss of €51.2m recorded in 2021 was turned into a €56.5m pre-tax profit in 2022.

In his letter to shareholders, Lecta CEO Gilles Van Nieuwenhuyzen said: “2022 was a year with a very strong financial performance for Lecta. The market showed a very strong demand and sales volumes have in general regained pre-Covid levels.

“The year was especially challenging due to the conflict in the Ukraine and the escalating raw material prices and energy crisis. All around the world there were disruptions in supply chains due to scarcity of some raw materials or delays in deliveries. The strike in our Leitza mill at the beginning of the year, has unfortunately impacted our service to customers.

“Despite all these difficulties, in 2022 Lecta was (in general) able to ensure our clients a good service and to simultaneously expand our margins reaching a record EBITDA.”

He added: “The last quarter of 2022 came with a strong decline in order intake, due to a general economic slowdown (mostly caused by rising inflation) and the high demand for products in the immediately prior period. This situation forced the company to take plant downtime in the last months of the year.

“These downtimes are expected to extend into the first quarter of 2023. The company will continue to adapt its production to market demand at all times.”

Van Nieuwenhuyzen said Lecta’s “journey of transformation” continued in 2022 and that the group continues to move away from graphic papers into specialties.

He outlined projects including the transformation of PM8 in Condat, the new CSR boiler in the Condat mill, and the new metalliser for its Leitza mill.

“Lecta has navigated successfully through the worldwide turmoil in 2022 which included all the consequences derived from the conflict in the Ukraine, and the subsequent energy crisis as well as the supply chain crisis,” Van Nieuwenhuyzen added.

“Our performance in these stormy waters gives us the confidence for dealing with the still uncertain macro-economic outlook for 2023.”