Higher sales volumes and further market share rise in 2024

Perlen, 11 April 2025 – Perlen Industrieholding AG commenced its business operations on 25 June 2024 following the spin-off of the Perlen Papier AG paper manufacturing business and the real-estate assets at the Perlen industrial site from the then CPH Chemie + Papier Holding AG (which was simultaneously renamed CPH Group AG). The demand for paper in Western Europe declined at substantially lower rates in 2024 (newsprint by 2.0 % and coated magazine papers by 2.4 %) than it had the previous year (newsprint down 21 %, coated magazine papers down as much as 25 %). The exceptionally steep prior-year declines in demand resulted in sizeable industry overcapacities in 2024, which in turn accentuated consolidation pressures. Despite this, Perlen Papier AG was able to increase its annual sales volumes by 14 %. The company also further enlarged its shares of the Western European market for both newsprint and magazine paper products.

Net sales for Perlen Industrieholding AG for the full 2024 calendar year (including the period prior to its spin-off from the CPH Group) amounted to CHF 244 million. Perlen Papier AG invested CHF 7.7 million in the course of the year in maintaining and further improving the efficiency of its production facilities. The year-end workforce totalled 376 employees.

Net sales for Perlen Industrieholding AG from its initial consolidation at the time of its spin-off from CPH Group AG on 25 June to the end of 2024 totalled CHF 119 million. The company has a significant property portfolio and is debt-free.

“The demand in Western Europe for publication paper had seen an exceptionally steep decline in 2023 which left the industry with substantial overcapacities in 2024,” explains Peter Schildknecht, CEO of Perlen Industrieholding AG. “As a result, we are presently in a phase of lower paper prices. And this in turn is further accentuating the industry’s consolidation.”

Challenging conditions on the waste paper procurement market

The situation on the recovered paper market remained challenging last year. The declines in the consumption of graphic papers led to lower waste paper return volumes and thus less recovered paper in Switzerland, too. As a result, a larger proportion of the recovered paper required for Perlen Papier’s production had to be procured from neighbouring countries. The longer transport journeys entailed and the presently very high market prices of recovered paper (from a long-term perspective) both in and outside Switzerland weighed heavily on the company’s costs. Price reductions are imperative on the recovered paper procurement front.

Potential of real-estate assets to be further exploited

Perlen Industrieholding AG owns 410 000 square metres of developable industrial land and 640 000 square metres of agricultural land at the Perlen site. Efforts will continue to be made to exploit the potential offered by these real-estate assets by attracting complementary activities. The Perlen site is favourably located in the heart of Switzerland, with good transport links and infrastructural connections. Some 70 000 square metres of the site are already used under land-lease agreements.

Outlook for 2025

Industry associations expect to see a continued decline in the demand for graphic papers in Western Europe in 2025. So the consolidation pressures within the paper manufacturing sector are likely to remain correspondingly high. Closures of capacities will further increase the market shares enjoyed by Perlen Papier AG. The company will continue to invest in optimizing its processes and raising its efficiency. Its net sales for 2025 should exceed their prior-year levels.

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