In This Article:
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Group Sales: Increased by 6% or EUR134 million, reaching nearly EUR2.3 billion.
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Adjusted EBIT: Increased to EUR175 million from EUR21 million last year; EBIT margin rose to 8% from 1%.
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Cash Flow from Operations: EUR271 million; cash flow after investing activities was EUR4 million.
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Packaging Materials Sales: Rose by 11% or EUR112 million, reaching EUR1.169 billion.
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Packaging Solutions Sales: Declined by 2% to EUR262 million.
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Biomaterials Sales: Increased by 10% or EUR36 million to EUR380 million.
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Wood Products Sales: Rose by 3% or EUR9 million, reaching EUR359 million.
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Forest Division Sales: Increased by 30% or EUR161 million to EUR695 million.
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Net Debt to EBITDA Ratio: Improved to 3.1, still above the target of 2.0.
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Forest Assets Value: Total forest assets valued at EUR18.8 billion.
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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Stora Enso Oyj (SEOAY) reported a continued profit improvement for the fourth consecutive quarter, driven by price increases and cost-saving actions.
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The company's packaging materials, biomaterials, and forest segments performed well, contributing positively to the results.
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Group sales increased by 6%, reaching nearly EUR2.3 billion, driven by higher prices in most divisions.
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The adjusted EBIT increased significantly to EUR175 million from EUR21 million last year, marking the highest operational EBIT since Q1 2023.
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Stora Enso Oyj (SEOAY) is committed to sustainability, targeting net zero carbon emissions by 2040 and achieving 94% recyclability of its products.
Negative Points
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The packaging solutions division faced substantial margin pressure due to market overcapacity, resulting in a sales decline and negative adjusted EBIT.
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High fiber costs, particularly from wood, reduced margins and profitability by EUR80 million.
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The company remains above its target net debt to EBITDA ratio of 2.0, despite improvements.
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Market volatility, including high inflation and potential labor strikes, is expected to impact fourth-quarter profits.
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The wood products division struggled with continued weak markets and low construction activity, impacting demand.
Q & A Highlights
Q: Could you provide details on the valuation and offers for the Beihai packaging site, and the timing for the sale of Swedish forest assets? A: We do not disclose specific numbers for Beihai, but retaining it maximizes shareholder value due to its high-quality output. Regarding the Swedish forest assets, there is significant interest, and while we have no set timeline, maximizing value is our priority.