In This Article:
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Revenue: SEK5.2 billion, a 22% increase.
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EBITDA: SEK2 billion, a 42% increase, with a margin of 38%.
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Net Income: Just below SEK1.1 billion or SEK1.52 per share.
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Forest Sales: Increased by 22%.
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Forest EBITDA: Increased by 42%.
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Industrial Return on Capital Employed: 12% for the last 12 months.
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Leverage: 1.6.
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Net Debt to Equity: 11%.
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Wood Segment Sales: Up 23%.
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Wood Segment EBITDA: Up 79%, margin increased from 13% to 19%.
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Pulp Sales: Up 27%.
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Pulp EBIT: Up more than 200%.
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Containerboard Sales: Up 15%.
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Containerboard EBITDA: Up 26%.
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Renewable Energy Sales: Up 6%.
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Renewable Energy EBITDA: Decreased by 36%.
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Operating Cash Flow: SEK708 million for the quarter, SEK1.9 billion for the first nine months.
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Forest Asset Value: SEK108 billion.
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Working Capital: Increased to SEK5.7 billion.
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Net Debt: SEK11.6 billion.
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Equity: SEK105 billion.
Release Date: October 25, 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 22% increase in forest sales and a 42% rise in EBITDA compared to Q3 2023, driven by higher prices and increased volumes.
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The company achieved an EBITDA of SEK2 billion, corresponding to an EBITDA margin of 38%, indicating strong profitability.
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Strategic investments in Obbola, Ulricehamn, and Gothenburg have been finalized, expected to contribute positively in the coming years.
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High harvesting levels from own forests have ensured a stable supply of wood raw materials, supporting industrial operations.
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The pulp segment saw a significant improvement with sales up 27% and EBIT increasing by over 200% year-on-year, primarily due to higher prices.
Negative Points
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The market for liquid biofuels and tall oil has weakened, with lower prices and bio premiums compared to the previous year.
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Higher raw material costs, particularly for wood, have negatively impacted profitability across several segments.
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The containerboard segment is experiencing high operational costs during the ramp-up phase of the new kraft line.
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There is a noted negative growth in the European manufacturing industry, affecting demand negatively.
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The renewable energy segment faced a 36% decrease in EBITDA due to lower market prices for tall oil and increased raw material costs.
Q & A Highlights
Q: Can you provide an overview of your order books across various segments and any internal limitations affecting production? A: We don't provide forecasts, but the market for solid wood products is balanced, with expectations of unchanged prices in Q4. Pulp prices peaked in summer and have since decreased, but the Chinese market is picking up. Containerboard prices have increased since April, and renewable energy might see better business in Q4. We don't have significant limitations except for planned maintenance stops. (Ulf Larsson, CEO)