In This Article:
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Sales Growth: Increased by 9% to EUR2.4 billion.
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Adjusted EBIT: EUR175 million, up 18% year-over-year with a 7.4% margin.
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Operating Working Capital: Decreased by 3 percentage points to 7%.
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Net Debt: Increased to EUR3.9 billion, with a net debt to EBITDA ratio of 3.2 times.
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Capital Expenditure: Approximately EUR240 million, expected to decrease after Q2.
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Cash Flow from Operations: EUR192 million, negatively impacted by a EUR100 million increase in working capital.
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Packaging Materials EBIT: Increased by EUR10 million to EUR62 million.
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Biomaterials EBIT: Decreased to EUR36 million due to lower sales prices and higher costs.
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Forest EBIT: Record high at EUR82 million, with assets fair value at EUR9.3 billion.
Release Date: April 25, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Sales grew by 9% in the first quarter, reaching EUR 2.4 billion.
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Achieved a robust adjusted EBIT of EUR 175 million, representing an 18% increase year-over-year.
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Successful production start of the new consumer board line at the Oulu Mill.
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Regulatory approval to proceed with the acquisition of Finnish sawmills, Junnikkala, enhancing operational synergies.
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Plans to implement a new leaner and flatter organizational structure to enhance efficiency and performance culture.
Negative Points
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Adjusted EBIT for the full year 2025 is expected to be adversely impacted by approximately EUR 100 million due to the ramp-up of the new packaging board line.
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Higher fiber costs negatively impacted results, with a total negative impact of EUR 131 million in the quarter.
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Cash flow after investing activities was negative at EUR 47 million, driven by the Oulu project.
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Wood costs remain at record high levels, impacting profitability.
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The Packaging Solutions division continues to face challenges due to market overcapacity and oversupply.
Q & A Highlights
Q: Can you explain the changes in the operational structure and what they imply for Stora Enso? A: Hans Sohlstrom, President and CEO, explained that the company is removing one management layer and creating a flatter organization with seven P&L responsible business areas. This change involves integrating Nordic sawmills with the closest pulp and board integrates to enhance efficiencies. The new structure will have 21 P&L responsible business units, decentralizing P&L responsibility closer to operations and sales.
Q: Regarding the Oulu mill ramp-up, what are the expected sales and pricing assumptions for 2025? A: Hans Sohlstrom stated that while specific volume targets for 2025 are not disclosed, the EUR800 million sales target is based on average long-term prices for folded boxboard and coated unbleached kraft. The ramp-up is progressing well, with prime quality customer trials underway.