ALPHARETTA - Mativ has reported a 76% increase in sales to $674.1 million for its quarter ending September 30, boosted by strong sales growth in release liners, protective solutions, filtration, and paper and specialty packaging.
The company was formed in July of this year following a merger of equals between Schweitzer-Mauduit International, Inc. (SWM) and Neenah, in effect creating a new $3 billion turnover nonwovens-based operation.
It should be noted that financial statements for periods prior to the merger reflect only the legacy SWM results while use of the phrase 'Comparable' – is a measure used to compare current period Mativ results with the combined reported results for legacy Neenah and SWM operations, adjusted for certain reclassifications between the legacy Neenah reporting segments in the prior year.
“Mativ delivered organic constant currency sales growth of 12% in the quarter, with most business areas delivering increased price, revenue, and margin," said Julie Schertell, chief executive officer, Mativ. "On a comparable basis, adjusted operating profits were up nearly 25%. Our merger integration is progressing well and we are executing on our $65 million cost synergy plan.
“Despite these positive performance trends, several factors are converging since mid-year to push second half 2022 EBITDA below our original expectations of $210 million to $230 million. Unfavorable currency trends have accelerated and there has been an increase in volatility in the macro backdrop, including global demand uncertainty and inflationary pressures led by the rapid escalation in energy costs, particularly in Europe."
The Advanced Technical Materials (ATM) segment sales were $426.1 million, up 64%, and reflect the merged company results versus the prior year period which reflected only legacy SWM results. Organic sales increased 6%, or 12% excluding negative currency impacts, driven primarily by price increases.
“Mativ’s fundamental outlook remains positive despite the current turbulence facing global manufacturers," Schertell added. "Our global teams are executing on these near-term cost synergies, as well as laying the foundation for accelerated long-term growth by leveraging the manufacturing technologies, customer relationships, and geographic footprint of our newly merged enterprise.”