Billerud AB SWOT Analysis & Company Profile by BusinessReview

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									Billerud AB

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Billerud AB: SWOT Analysis & Company
Profile


Reference code: PK0016CP

Published: Oct 2010




Business Review
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London EC4Y 0BS
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Tel: +44 (0) 20 7936 6400
Fax: +44 (0) 20 7336 6813



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Billerud AB - SWOT Profile                                                          Page 1
Billerud AB

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Billerud AB - Company Overview

Billerud AB (Billerud) is a paper and packaging company, principally engaged in the production of pulp, specialty papers
and packaging. The company conducts its business in three divisions namely, Packaging and Specialty Papers;
Packaging Boards and Market Pulp. It supplies wide range of packaging paper products for applications in the
pharmaceuticals, food and consumer electrical industries. These applications include packaging of medicine, pizzas,
wines, perfumes, pet food, fruit and vegetables, and white goods and domestic appliances. Billerud also operates
internationally and manages a production plant in the UK and Sweden. The company has 11 sales offices in 10 countries,
serving approximately 1,100 customers in about 100 countries. Billerud is headquartered in Solna, Sweden.


Financial Performance

The company reported revenue of USD 7792 million during the year 2009, a decline of 0.19% over the fiscal year 2008.
The company's revenue grew at a CAGR of 0.14% during the period 2007-2009. During the fiscal year 2009 its operating
margin was 3.85% as against the operating margin of 3.70% during the fiscal year 2008. Moreover, during the fiscal year
2009 the company’s net profit margin was 2.11% as against the net profit margin of 1.94% during the fiscal year 2008.




Billerud AB - Key Facts

Billerud AB, Key Facts

                                  Gustav III:s Boulevard 18, Solna,
                                                                      Ticker Symbol, Stock
Corporate Address:                                                                                  BILL (Stockholms Fondboers)
                                  , 169 27, Sweden                    Exchange



Telephone                         + 46 8 55333500                     No. of Employees              2,226



Fax                               + 46 8 55333560                     Financial Year End            December



URL                               www.billerud.com                    Revenue (in SEK Million)      7,792.00


                                  Alternative Energy , Paper and
Industry                          Packaging
                                                                      Revenue (in USD Million)      1,018.56

                                  Australia, Bangladesh, China, Hong Kong Special Administrative Region of China, India, Indonesia,
                                  Japan, Malaysia, Republic of Korea, Azores Islands, France, Germany, Italy, Sweden, Algeria,
Locations                         Cameroon, Egypt, Ethiopia, Ghana, Iraq, Israel, Jordan, Kenya, Kuwait, Lebanon, Libyan Arab
                                  Jamahiriya, Morocco, South Africa, United Arab Emirates, Canada, United States, Argentina, Bolivia,
                                  Brazil, Ecuador, Mexico, Panama, Peru
Source: Annual Report, Company Website, Primary and Secondary Research




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Billerud AB - SWOT Profile                                                                                                  Page 2
Billerud AB

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Billerud AB - Business Description

Billerud AB (Billerud) is a Sweden based paper packaging company, engaged in the production of paper packaging and
pulp. It provides packaging materials and solutions in Europe. The company has 11 sales offices in 10 countries serving
approximately 1,100 customers in about 100 countries. Billerud employs over 2,175 people.

Billerud conducts its operations through three business divisions/ segments namely, Packaging and Specialty Paper,
Packaging Boards, and Market Pulp.

The Packaging and Specialty Paper division provides sack paper, which is used to pack cement and building materials,
chemicals, foodstuff, and animal feed. It offers packaging paper such as carrier bags, technical kraft paper, consumer
bags, protective wrapping and envelopes, and grease resistant paper especially for packing bread, sugar, flour, ice
cream, copy paper, and snacks. This segment also offers specialty paper for various industrial applications such as self-
adhesive labels, steel protection, sterile medical packages, and pulp wrap. During the fiscal year 2009, this segment
accounted for 51% of net sales of the company, generating USD 3,934 million, an increase of 2.7% over the fiscal year. .

The Packaging Boards division offers liner and fluting products to pack fruits and vegetables, wine, and other beverages;
fast foods; heavy goods, such as white goods, home electronics, and luxury and gift items including perfumes, mobile
phones, and spirits. This segment through its Fresh Services, offers producers, wholesalers and retailers a long-term
partnership aimed at reducing losses in the supply chain for fruit and vegetables. During the fiscal year 2009, this
segment accounted for 30% of net sales of the company, generating USD 2,362 million, a decline of 0.08% over the fiscal
year 2008.

The Market Pulp division provides long-fiber market pulp for the producers of writing and printing papers, coated and
uncoated papers, LWC, packaging paper, tissues, thermo paper, and special papers. It also offers special products such
as air filter for cars. It produces 316,000 tons of market pulp annually. During the fiscal year 2009, this segment generated
17% of net sales of the company, generating USD 1,338 million, a decline of 10.7% over the fiscal year 2008.

In addition to the business areas, its operations include group-wide functions such as corporate headquarters, wood
supplies and the sales organizations. These functions are reported as Other business, where even profit shares in
associated companies/joint ventures, Nine TPP AB and ScandFibre Logistics AB, as well as earnings from the subsidiary
acquired during the year Tenova Bioplastics AB. During the fiscal year 2009, this segment generated 2% of net sales of
the company, generating USD 126 million, an increase of 29.9% over the fiscal year 2008. .

The company serves more than 1100 customers all over the world. It manages subsidiaries in 10 countries.
Geographically the company operates in Germany, Italy, Sweden, France, Rest of Europe and Rest of the World. During
the fiscal year ended December 2009, the company generated 16% of the total revenue from Germany, 13.5% from Italy,
8.5% from Sweden, 5.4% from France, 32.8% from Rest of Europe and 23.8% from Rest of the World.

Recently Marks & Spencer chose Billerud FibreForm, a paper with high stretchability as a packaging solution for sliced
meat. The new product of the company can compete with plastic in areas where it was not possible earlier. Further the
company has decided to start production at Skarblacka and Gruvon paper mill.




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Billerud AB - SWOT Profile                                                                                          Page 3
Billerud AB

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Billerud AB - Major Products and Services

Billerud AB (Billerud) is engaged in the production of paper packaging and pulp. The key products, services and brands
offered by the company include the following:

Billerud AB, Major Products and Services
Products:

Kraft Paper

Sack Paper

Fluting

Liner

Liquid Board

Cup Stock

Nordic Long-Fibre Bleached Sulphate Pulp

Services:

Purchased Services

Brands:

FibreForm

Medikraft

Sterikraft

QuickFill

Billerud Flute

Billerud Pure Board
Source: Annual Report, Company Website, Primary and Secondary Research




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Billerud AB - SWOT Profile                                                                                       Page 4
Billerud AB

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Billerud AB - History

Billerud AB, History

    Year                Event type                                                    Description


                                                Billerud was awarded by International Mortar Association for The QuickFill Concept,
   2009      Corporate Awards
                                                Sack Solutions.


                                                The company was awarded by Packaging Industry Award for Billerud & Flextrus
   2009      Corporate Awards
                                               
								
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