Klockner Pentaplast - comment

KP released preliminary trading results in which the Company have guided to higher Adj. EBITDA for Q2 and to the higher end of previous full-year guidance.  Food volumes were more muted than our expectations and overall volumes are slightly lower than Q1. The trading update was not expected by market participants and is ad-hoc in nature.

The update is broadly within our model and doesn’t change our thesis.  Overall the company seems to be controlling costs and passing on higher inputs to customers as reflected in its EBITDA guidance, which is good news for any supporting the upcoming refinancing process, which we expect later this year on the back of Q2 and Q3 numbers.