SOUTH AFRICA—  Sappi Group delivered record profits $1.3 billion US, which was well above the previous record set in FY2000 (US$1,052 million). Strong demand and the implementation of  higher sales prices to offset rising costs. The graphic paper segment generated recorded profits of US$650 million. Sappi says the remarkable turnaround from the lows of 2020 was driven by a number of factors which led to an unprecedented global shortage of graphic paper. These included a surge in demand as economic activity normalised post-Covid-19 and a very tight market balance due to a combination of chronic global logistical challenges and reduced supply. Market capacity was impacted by permanent closures and a prolonged labour strike in Finland. The buoyant demand boosted sales volumes for the segment by 8% compared to the prior year. Furthermore, the favourable market conditions provided support for a series of selling price increases and energy/ freight surcharges, which were necessary to compensate for substantial cost inflation and facilitated the material improvement in profitability for the segment. Sappi says the strategic priority to invest in packaging and speciality papers in recent years reaped rewards.