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• Revenue: Approximately EUR1.9 billion, unchanged from the previous year.

• Operating Result: EUR69 million, significantly weaker than in 2023.

• Paperboard Deliveries: Increased by over 40,000 tonnes in Q4 compared to the same quarter last year.

• Insurance Compensation: EUR7.5 million received related to the Kemi bioproduct mill explosion.

• Negative Profit Impact: EUR9 million due to the Kemi mill shutdown.

• Return on Capital Employed: 3.2% for the full year, below the target of over 12%.

• Cash Flow: Operational cash flow at EUR38 million for the full year; free cash flow was EUR84 million negative.

• Net Debt: Approximately EUR350 million at the end of the year.

• Leverage: At a level of two, below the maximum target of less than 2.5.

• Investments: Total value of EUR175 million in 2024.

• Warning! GuruFocus has detected 6 Warning Signs with FRA:MSRB.

Release Date: February 06, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Metsa Board Oyj (FRA:MSRB) reported a 7% increase in full-year delivery volumes compared to 2023.

• The company received EUR7.5 million in insurance compensation related to the Kemi bioproduct mill explosion.

• Folding boxboard sales strengthened in each market compared to the previous year.

• The company has a solid financial position despite recent large growth investments.

• Metsa Board Oyj (FRA:MSRB) is making significant investments to improve energy efficiency and reduce carbon footprint.

Negative Points

• Q4 demand for paperboard was lower than expected, leading to production curtailments and temporary layoffs.

• The operating result for 2024 was significantly weaker than in 2023, at EUR69 million.

• The Kemi bioproduct mill shutdown had a roughly EUR9 million negative impact on operating results.

• Cash flow has been in steep decline, with free cash flow at EUR84 million negative for the year.

• The company faces challenges from increased import volumes of carton board from Asia, impacting market balance in Europe.

Q & A Highlights

Q: What is the current demand for paperboards in Europe, and what is the outlook for folding boxboard pricing in Europe and North America this winter and spring? A: Mika Joukio, CEO, stated that Q1 is expected to be better than Q4, with improved order inflows from Europe and other markets. Prices are estimated to remain flat or slightly better in Q1 compared to Q4 for both white kraftline and folding boxboard in Europe and North America.

Q: Can you provide insights into the annual contracts for folding boxboard in Europe? A: Mika Joukio, CEO, mentioned that the volumes for annual contracts in Europe are higher than last year, and prices are pretty much flat, which is considered a good achievement given the global demand and supply situation.