Operations & Management
Rayonier’s 2023 Investor Day focuses on vision and financial growth strategy
October 13, 2023 By P&PC Staff
Rayonier Advanced Materials shared its financial growth strategy during its 2023 Investor Day event held on October 10.
De Lyle W. Bloomquist, RYAM’s president and chief executive officer, stated, “Looking beyond the current headwinds, RYAM has a tremendous opportunity to drive significant upside for its shareholders through capturing value from our Cellulose Specialties offerings, unlocking the potential of our Biomaterials business, reducing our commodity exposure, and addressing our balance sheet.”
Key highlights from the day include:
- Core Cellulose Specialties business is expected to benefit from the recent capacity closure in the industry.
- Focus on generating free cash flow and repaying debt to position the company to refinance its 2026 Notes in 2024.
- Investments to expand the biomaterials business provide compelling growth prospects financed with low-cost capital.
- Conducting a strategic review of the Temiscaming site including a potential sale of non-core businesses with proceeds expected to be applied toward debt reduction.
- Executing strategy to minimize negative EBITDA impact of commodity viscose and paper pulp products.
- Demonstrating a willingness to curtail production based on market conditions.
- Near-term hurdles with expected lower third-quarter results and guidance for the full year. A more detailed update to be provided at the next quarter earnings call in early November.
- Financial vision centred on achieving $325 million in annual EBITDA over the next five years.
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