In This Article:
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Revenue: Increased 15% to just below SEK5.3 billion.
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EBITDA: Increased 11% to just below SEK1.9 billion, with a margin of 36%.
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Net Income: SEK960 million or SEK1.37 per share.
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EBIT Margin: 26%.
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Net Debt to Equity: 11%.
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Forest Segment Sales: Increased to SEK2.2 billion.
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Wood Segment Sales: Increased to SEK1.5 billion, with EBITDA margin of 20%.
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Pulp Segment Sales: Increased to SEK2.1 billion, with EBITDA margin of 24%.
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Containerboard Segment Sales: SEK1.6 billion, with EBITDA margin of 15%.
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Renewable Energy EBITDA: Decreased to SEK85 million.
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Operating Cash Flow: SEK526 million for the quarter.
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Forest Assets Value: SEK108 billion.
Release Date: July 26, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Svenska Cellulosa AB (SVCBF) reported a 15% increase in net sales, driven by higher prices and volumes.
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The company's EBITDA increased by 11% to SEK1.9 billion, with an EBITDA margin of 36%.
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The ramp-up of the new CTMP mill is progressing well, contributing to a 22% increase in sales and a 34% increase in EBITDA for the pulp segment.
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The company has completed significant strategic investments in Obbola, Ortviken, and Gothenburg, which are expected to contribute positively in the coming years.
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Svenska Cellulosa AB (SVCBF) continues to grow in leasing out land for wind power, reaching 9.7 terawatt of wind power on its land, equal to 20% of installed capacity in Sweden.
Negative Points
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The renewable energy segment experienced a weaker quarter with a 53% decrease in EBITDA due to lower market prices for tall oil and biofuels.
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There was an unplanned production stop at the Ostrand pulp mill, resulting in a negative impact of approximately SEK60 million in Q2, with a similar impact expected in Q3.
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The market for liquid biofuels in Europe has been negatively affected by reduced blending mandates in Sweden and increased imports from China.
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Higher raw material costs, particularly for wood, have negatively impacted several segments, including pulp and containerboard.
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The company faces continued high operational costs during the ramp-up phase of the new kraftliner machine in Obbola, with full capacity not expected until 2026.
Q & A Highlights
Q: Can you provide insights on the forest valuations given the limited transactions? A: We haven't seen official statistics yet, but the market has been slow. Prices may be slightly lower than last year, but it's hard to compare due to geographic differences. We expect interest rates to impact the market positively in the future. - Ulf Larsson, CEO