In This Article:
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Quarterly Sales: EUR499 million in Q3.
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Year-to-Date Sales: Just under EUR1.5 billion.
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Operating Result (Jan-Sep): EUR73 million, down from EUR121 million last year.
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Operating Margin: 4.9% for the review period.
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Paperboard Delivery Volumes: Increased by almost 50,000 tonnes in Q3.
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Insurance Compensation: EUR23 million recorded in Q3 operating result.
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Comparable Return on Capital Employed (Q3): 7.3%.
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Net Debt: Approximately EUR350 million.
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Leverage: 2.0, below the maximum target level of 2.5.
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Free Cash Flow: EUR25 million negative for the rolling 12 months.
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Total Investments (Jan-Sep): EUR121 million.
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Estimated Total Investments for 2024: EUR175 million to EUR200 million.
Release Date: October 24, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Paperboard production volumes increased significantly, with over 100,000 tonnes more compared to Q3 last year.
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Insurance compensation of EUR23 million was recorded in Q3, partially offsetting losses from the Kemi mill explosion.
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The company renewed its dividend policy, aiming to pay at least half of the financial period's result as dividends.
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Folding boxboard sales have strengthened in each market area, particularly in EMEA.
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Metsa Board Oyj's strategy focuses on growing in fiber-based packaging materials and renewing industrial operations, with investments aimed at improving competitiveness and sustainability.
Negative Points
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Market pulp delivery volumes fell sharply in Q3, primarily due to weak demand in China.
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The operating result for January-September was EUR73 million, significantly lower than the EUR121 million in the same period last year.
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Cash flow has been unsatisfactory, with operating cash flow negative for most of the year.
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Net debt rose to approximately EUR350 million, the highest level in the last five years.
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The company expects Q4 operating results to be weaker than Q3, with potential impacts from seasonal demand slowdowns and rising costs.
Q & A Highlights
Q: Can you clarify the pricing situation for paperboards in Q3 compared to Q2? A: The prices did not decline; the difference is due to a weaker mix. For Q4, we expect prices to remain stable. - Mika Joukio, CEO
Q: What is the current capacity utilization in paperboards, and how do you plan to manage it in Q4? A: Husum and Kemi mills are running full due to ramp-up phases, but other mills have taken downtime due to weaker order inflow. We will continue to curtail production and may implement temporary layoffs if the situation persists. - Mika Joukio, CEO