Sappi reports $33 million loss in 03 2025 amid market challenges

SAPPI reported a $33 million loss for the third quarter to June 2025, versus a $51m profit at the same time last year, but a better result is anticipated in the fourth quarter, CEO Steve Binnie said Thursday.

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The paper, packaging and pulp group struggled against muted demand and prices for many of its products because of the weak and uncertain global macroeconomy, and trade and tariff tensions, and a later than expected start of the $500 million Somerset Mill project in the US, Binnie said in an interview with Business Report.

The adjusted earnings per share (EPS) came to a loss of 4 US cents, compared with a 9 US cents profit last year. The share price slipped 1.52% to R26.55 Thursday morning on the JSE.

He said however the Somerset Mill was now ramping up production after completing its expansion in May, 2025, its capital expenditure that had ratcheted up group debt was now over, group annual capital expenditure was expected to fall to around $300m a year and be focused mainly on maintenance, there were no mill maintenance shuts planned for the fourth quarter.