Although operating profit was down 110% to PLN 9.5m, the group's turnover increased by 15.2% from the previous year to PLN 1.06bn.
The main factor affecting the business was "a marked increase in the prices of pulp", which it said on average had risen by more than 50% compared to the same period last year.
Arctic Paper put this down a growing demand for paper, pressure from suppliers seeking to compensate for weak results in 2009 and limited supplies as a result of the earthquake in Chile.
It also cited a sharp rise in electricity prices in Sweden, as well as "unfavourable trends" in currency exchange rates.
Michael Jarczyñski, chief executive of Arctic Paper, said: "We have taken a series of measures in order to improve our performance.
"This includes further price increases for our products, improving product and customer mix and implementing plans to improve profitability at all of our plants."
He added that a reduction in the costs of raw materials was anticipated and this should make a "significant contribution" to improved results by the end of the current year.
Arctic Paper has implemented substantial price increases during 2010, such as a 10-12% increase from 1 June, on woodfree coated and uncoated papers.
A spokeswoman for the company said it could not rule out further price rises during the rest of this year.
However, the group said it had experienced a "satisfactory" level of demand and added that its plants were running at more than 90% of their production capacity.
On 1 March, Arctic Paper also completed the purchase of Sweden's Grycksbo Paper Holding. It said the process of integrating the Grycksbo paper mill into the Arctic Paper group structure was well under way.
