In This Article:
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Adjusted EBIT Growth: 75% year-on-year increase, reaching EUR598 million.
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Fixed Costs Reduction: Decreased by EUR110 million.
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Operating Working Capital: Reduced by over EUR700 million, lowering from 14% to 7% of sales.
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Full-Year Sales: Declined by 4% to EUR9 billion; sales for continuing businesses increased by 1%.
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Fourth-Quarter Sales: Increased to EUR2.3 billion.
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Fourth-Quarter Adjusted EBIT: Increased to EUR121 million, a 139% increase from the previous year.
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Adjusted EBIT Margin: Increased to 7% from 4% the previous year.
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Net Debt: Increased to EUR3.7 billion; net-debt-to-adjusted-EBITDA ratio improved to 3 times.
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Dividend Proposal: EUR0.25 per share, up from EUR0.20 last year.
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Capital Expenditures: Additions to fixed and biological assets slightly over EUR1 billion; expected to decrease to EUR730-790 million in 2025.
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Forest Assets Valuation: Increased to EUR8.9 billion, translating to EUR11.28 per share.
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Cash Flow from Operations (Q4): EUR325 million; cash flow after investing activities improved to EUR88 million.
Release Date: February 11, 2025
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) achieved a robust 75% year-on-year growth in adjusted EBIT for 2024, driven by improved sourcing, operational efficiency, and commercial excellence.
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The company reduced its fixed costs by EUR110 million, which helped offset rising wood costs.
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Operating working capital reached an all-time low, decreasing by over EUR700 million, reducing the operating working capital to sales ratio from over 14% to 7%.
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The Board proposed a dividend increase to EUR0.25 per share, up from EUR0.20 last year, reflecting a commitment to shareholder value.
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Stora Enso Oyj (SEOAY) achieved a 53% reduction in Scope 1 and 2 emissions, surpassing its target of a 50% reduction by 2030, demonstrating strong progress in sustainability efforts.
Negative Points
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Full-year sales declined by 4% to EUR9 billion, primarily due to capacity closures and divestments in 2023.
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The Packaging Solutions division faced margin pressure due to market overcapacity, resulting in a negative adjusted EBIT of EUR6 million.
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Wood Products division's adjusted EBIT remained negative at EUR12 million, despite improvements in volumes and prices.
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The company is still far from its long-term financial targets, indicating ongoing challenges in achieving desired profitability levels.
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Market uncertainties and fluctuations in demand and pricing persisted throughout 2024, impacting overall business performance.