Arctic Paper Strengthens Market Position and Advances Strategic Growth Initiatives in Q1 2026

Arctic Paper Group reported resilient operational performance in the first quarter of 2026, strengthening its position in the European paper market while advancing strategic investments in sustainable packaging and renewable energy despite continued market uncertainty.

The Group maintained stable consolidated revenue of PLN 814.0 million in Q1 2026, compared with PLN 822.8 million in the same period last year, supported by higher paper sales volumes and improved order intake across Europe.

Arctic Paper Expands European Market Share

Arctic Paper continued to strengthen its competitive position in Europe, increasing its market share in uncoated woodfree (UWF) paper from 10.6% to 13.0% over the past three years, while coated woodfree (CWF) paper market share increased from 6.6% to 8.5%.

Paper sales volumes increased to 137,000 tonnes in Q1 2026, compared with 125,000 tonnes in the corresponding period of 2025, reflecting the effectiveness of the Group’s proactive commercial strategy.

In addition, Arctic Paper recorded a 13.9% increase in order levels compared with Q4 2025 and a 9.4% increase year-on-year, despite continued weakness in European paper markets.

Price Increases to Support Margin Recovery

To offset rising input costs and protect profitability, Arctic Paper implemented paper price increases of 5–7% from April 2026 and announced additional increases of 4–8% effective from 1 June 2026.

The Group also intensified cost optimisation efforts and tightened capital expenditure discipline, reducing capex by more than half compared with the previous year. Arctic Paper expects its efficiency and cost reduction programme to contribute approximately PLN 6 million to earnings in 2026.

Sustainable Packaging Expansion

During the quarter, Arctic Paper’s new pulp tray production facility in Kostrzyn entered commercial production, marking another milestone in the Group’s transition toward sustainable fibre-based packaging solutions.

The investment supports growing demand for recyclable and renewable packaging alternatives as industries continue shifting away from plastic-based products.

Challenging Market Environment Continues

The Group noted that weak demand, geopolitical uncertainty and currency volatility continue to affect the European paper market environment. In particular, fluctuations in EUR, SEK and USD exchange rates, combined with slowing economic activity in Europe, remain key challenges for the industry.

Despite these conditions, Arctic Paper stated that its strong balance sheet, operational discipline and strategic diversification initiatives provide resilience and position the Group for long-term development.