On March 27, integrated papermaker Gascogne, headquartered in Mimizan in the Landes region of France, published its financial results for fiscal 2024. Against a tense market backdrop, marked by a normalization of sales prices and falling demand, sales came to 391.2 million euros, down 4.9% on 2023.
Structuring investments for the Mimizan site
The annual performance of the group, which employs 1,400 people at 13 plants worldwide, was driven by growth in the second half of the year (+8%), which cushioned the downturn recorded in the first half (-15%). The latter was notably impacted by a two-month shutdown at the paper mill, following a ban on restarting the MAP3 machine by the inspection body. This situation weighed heavily on the paper business, whose EBITDA fell by ?13.3 million, to break-even.
Faced with structural difficulties in its paper division, Gascogne is continuing its major modernization project with the installation of a new paper machine at Mimizan. Estimated at 275 million euros, the project will replace three older machines with a more efficient line. By the end of 2024, 113 million euros have already been invested, and the Group expects the new line to be commissioned by the end of 2026, with ramp-up during 2027.
In terms of business activities, the Wood segment posted a marked increase in sales to 41.8 million euros (+25%), driven by the upturn in the sawn timber market from March onwards, while EBITDA returned to positive territory at 1.5 million euros.
The Flexible business (which concentrates on the production of multilayer materials) also recorded a slight increase in EBITDA to ?14.4 million, confirming the solidity of both production sites. The more buoyant second half-year saw a recovery in volumes. By contrast, the Bags segment continued to suffer from the difficulties of its outlets (construction, chemicals), particularly in Germany, with EBITDA down by 2.4 million euros.
And the Sac business is down, with sales of ?117.6 million versus ?126.7 million in 2023, and EBITDA of ?11.2 million versus ?13.6 million the previous year.
A slight net loss
For the full year, consolidated EBITDA came to 28.6 million euros (versus 40 million euros in 2023). Operating income before non-recurring items fell to ?6.1 million (from ?18 million), and consolidated net income was slightly negative at ?0.6 million, compared with a profit of ?9.7 million the previous year. This trend reflects the additional costs associated with the shutdown of the paper mill, combined with higher depreciation.
Continued investment and vigilance over costs
Despite the lack of visibility for 2025, particularly in the sack and paper markets, Gascogne is maintaining its industrial modernization and R&D efforts. The first months of the year seem to confirm the momentum of the second half of 2024, with some favorable signals in the Wood, Sacks and Flexible segments. The Group remains attentive to trends in raw material, energy and transport costs, while pursuing a strict policy of cost control.
