In the first quarter of 2010, the company generated a turnover of PLN479.4m, up from PLN475.6m for the same period a year ago.

However, its operating profit was down 74.7% from PLN50.3m in the first quarter of 2009 to PLN12.7m.

The company said that, during the first quarter of 2010, indicative prices of pulp rose by 13% – an increase of more than 40% since the first quarter of last year.

Chief executive Michal Jarczynski added that the Chilean earthquake, which struck at the end of February, had been an extraordinary event that further destabilised supply and demand on the pulp market.

Some 9% of the world's pulp is said to have been put out of operation following the 8.8-magnitude earthquake, which has caused further rises in pulp prices.

Jarczynski said: "We have taken a number of steps to minimise the effect of these risks on our results in future quarters.

"Among other changes, we implemented price increases for our products and plans for improving the profitability of the group's paper mills."

In April, Arctic Paper announced a price increase of 10-12% for woodfree coated and uncoated papers. 

Jarczynski added that increases in paper prices had made it possible to offset, in part, the increase in raw materials and unfavorable exchange rate, but not in full.

In March, the company's net profit soared by nearly 400%, according to the group's fourth-quarter results.

The company also completed its purchase of Sweden's Grycksbo Paper Holding on 1 March, which annually produces 265,000 tonnes of coated fine paper, boosting the company's capacity by nearly half.