In This Article:
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Underlying EBIT (Q4 2024): SEK -28 million, impacted by maintenance stops.
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One-off Sales of Emission Rights (Q4 2024): SEK 76 million.
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EBIT (Full Year 2024): SEK 47 million, affected by high raw material costs.
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Investment Program (2024): SEK 450 million, including new plant and capacity increases.
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Long-term Loan Refinancing: SEK 400 million loan and SEK 150 million revolving credit facility.
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Available Liquidity (End of 2024): SEK 385 million.
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Equity to Assets Ratio (End of 2024): 59%.
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Wood Cost Share of Total Cost (2024): 70%, up from 65% in the previous year.
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Sales into Tissue Segment (2024): Increased from 9% to 11% of total sales.
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Sales into Cotton Board Segment (2024): Decreased from 29% to 22% of total sales.
Release Date: February 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Rottneros AB (LTS:0H0L) reported an underlying improvement in EBIT, despite maintenance shutdowns affecting results.
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The company successfully completed a significant investment program, including a new tall oil plant, expanded CTMP capacity, and solar panels, totaling SEK450 million.
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Rottneros AB (LTS:0H0L) benefited from higher sales prices and a favorable USD to SEK exchange rate, positively impacting revenue.
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The company has diversified its sales strategy, increasing exposure to stable segments like tissue and electrotechnical specialties.
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Rottneros AB (LTS:0H0L) maintains a strong balance sheet with an equity to assets ratio of 59% and available liquidity of SEK385 million.
Negative Points
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Rottneros AB (LTS:0H0L) faced high raw material costs, particularly for pulpwood and formal chips, impacting profitability.
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The company decided not to pay a dividend for 2024 due to weak results and an uncertain macroeconomic environment.
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The pulp market experienced a slowdown in the fourth quarter, with prices peaking and then declining.
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Rottneros AB (LTS:0H0L) experienced weak deliveries in Q4, partly due to maintenance shutdowns and lower demand in the CTMP market.
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Rising wood costs are expected to increase working capital needs, potentially affecting future financial flexibility.
Q & A Highlights
Q: How does your cost structure compare to your competitors? A: Monica Pasanen, CFO: We are in the softwood pulp segment, and our variable costs, particularly wood costs, are similar to those of our competitors in the North European market. The cost of softwood in North America is also high, so we face a similar situation as other softwood producers.