23 June 2023
MANUFACTURE AND SALES
Based on the Company's results in 2022, IFRS EBITDA increased by 39% to 4.33 billion rubles compared to 2021. Revenue from product sales increased by 8% to 14 billion rubles, with net profit of 2.7 billion rubles.
Last year, the Company produced the largest amount of products since 2014: by the end of 2022, the Mill's output exceeded 300,000 tones. JSC Volga's share of production volume among Russian paper manufactures in 2022 was 22%.
Geopolitical events in 2022 require the Company to be even more flexible and able to quickly adapt to changes: whereas previously JSC Volga's production mix was 60 % packaging paper and 40 % newsprint, but in 2022, due to changes in the market environment, 60 % was newsprint and 40 % packaging paper.
In 2022, the Company exported its products to more than 50 countries.
The markets, that JSC Volga is rediscovering, are China, the Middle East, Africa, Turkey, and the CIS. The traditional markets are Russia and India. There is no denying that Russia remains a key market for the Company. Not only for newsprint, for which JSC Volga has been famous for many years, but also for tare types of paper. In 2020, JSC Volga entered the corrugated packaging market and in 2021, it consolidated its position there.
The Company's development strategy, which is being implemented in stages starting from 2019, has made it possible not only to overcome all the difficulties of 2022, but also to make serious progress.
INVESTMENT PROJECTS
In 2022, the Company invested heavily in expanding production, improving the Mill’s energy efficiency and increasing paper output.
The Company has started to launch a new investment project in the Nizhny Novgorod region, which includes modernization of paper machine No. 6 and expansion of timber production in the region.
During 2022, the Investment project concept passed all the necessary stages of approval and was included in the list of priority investment projects in the field of forest development.
FOREST SUPPLY
The reforestation programme was fully implemented by JSC Volga in 2022. Based on the results of the logging area’s operations, the estimated harvesting area in 2022 was utilized at 95% of the plan, with adjustments periodically made by the market demand for timber products. The main role in the timber and raw material supply was played by the implemented mechanism in the form of direct timber supplies and counter supplies of raw materials. This scheme of forest supply operation gives confidence in the future and guarantees uninterrupted supplies of raw material.
STAFF
The long-term recruitment programme up to 2025 provides for the implementation of various projects on career guidance, attraction of young specialists and qualified workers and engineers, training and development of staff at workplaces, training in in-demand professions at the Company's expense, formation and development of the personnel reserve.
In 2022, JSC Volga launched a new programme to improve the staff motivation system, and the Company became a leader in the rating of the region's best employers in 2022.
More than 60 specialists from different divisions of JSC Volga have already joined to the new Reliability project aimed at building a system of the reliability of paper-making equipment improvement. The Reliability project is a large-scale and new project for our Company. Its main goal is to move from the elimination of accidents in production, to a mode of prevention of such situations.
ENVIRONMENT
Environmental protection is one of the key priorities for the Company. The 2022 results confirm the Company's commitment to the principles of "green economy", focusing on minimizing waste generation and efficient use of natural resources. In 2022, the Company's total current costs on environmental protection amounted to over 300 million rubles (including payments for environmental services).
SUSTAINABLE DEVELOPMENT
The Company also achieved a lot in implementing its sustainability programme in 2022: “Expert RA” rating agency confirmed JSC Volga's creditworthiness rating at ruA- with a stable forecast in 2022.
In 2022, key equipment for a new turbine in the energy complex (NIGRES) was put into production, deliveries of key equipment for the modernization of paper machine No. 6 began, and projects to improve the quality of output of paper machines No. 8 and No. 5 continued, which showed a positive effect from their implementation.
At the same time, emphasis was placed on finding new suppliers of equipment and services, reducing dependence on foreign suppliers and optimizing supply chains.
In 2022, JSC Volga became a member of the Nizhny Novgorod Region Chamber of Commerce and Industry, providing additional opportunities to participate in regional government support programs and boost its operations, find new markets, and develop economic ties with companies in Russia and abroad.
QUALITY ACHIEVEMENTS
Work continues in the area of improving the quality of finished product. In 2022, the Company received the "Conclusion on the state of measurements in the paper laboratory" valid until 2025. Compliance with this standard guarantees that the Paper Mill's product meets all stages of quality control and is confirmed by conclusions drawn by the State Regional Centre for Standardization, Metrology and Testing in the Nizhny Novgorod Region.
Four of JSC Volga's products won prizes at the All-Russian competition "100 Best Goods of Russia-2022": corrugated paper, newsprint (GOST), reduced weight newsprint and bulky uncoated paper.
In the future, the Company will continue to actively seek projects to increase efficiency and improve production and business transformation.
"During 2022, we changed our supply geography three times, with each time changing by at least 40 %. At the same time, management's efforts allowed us to structure the processes of forecasting, planning, production and sales, which ultimately made the Company stronger. However, the most important thing is that we managed to get through the year without any loss of productivity and to maintain our output at the planned level. This is a great merit of our entire team, which is able to quickly and effectively solve the challenges that arise to ensure the sustainable functioning of business processes in turbulent conditions," - said Sergey Pondar, the Volga's General Director.
Download the Company's Annual Report for 2022 at the following link: https://www.volga-paper.ru/en/information/annual-report/
Volga Press Service
