“Given the continuously challenging circumstances, I am satisfied with the year-on-year development”, says Hans Sohlström, President and CEO of Stora Enso.
Q1/2024 (year-on-year)
• Sales decreased by 20% to EUR 2,164 (2,721) million.
• Adjusted EBIT decreased to EUR 156 (234) million.
• Adjusted EBIT margin was 7.2% (8.6%).
• Operating result (IFRS) decreased to EUR 148 (258) million.
• EPS was EUR 0.11 (0.24) and EPS excl. fair valuations (FV) was EUR 0.09 (0.23).
• Cash flow from operations amounted to EUR 269 (254) million. Cash flow after investing activities was EUR -104 (1) million.
• Net debt increased by EUR 601 million to EUR 3,518 (2,917) million, mainly due to the board investment at the Oulu site.
• The net debt to adjusted EBITDA ratio (last 12 months) was 4.0 (1.3). The target is to keep the ratio below 2.0.
• Adjusted ROCE (last 12 months) excluding the Forest division decreased to 0.0% (16.5%), the target being above 13%.
Key highlights
• The profit improvement programme, initiated in the first quarter, has progressed well and the annual profit improvement target has been increased to EUR 120 million, from the initial EUR 80 million, driven by additional fixed cost reductions. The programme does not include site closures and may result in the reduction of approximately 1,000 employees.
• Operating working capital decreased by EUR 551 million year-on-year, driven by our continued focus to improve working capital efficiency.
• The consumer board investment at the Oulu site in Finland is progressing on schedule. Production is expected to start in the first half of 2025, with full capacity estimated to be reached during 2027.
• The plan to divest the Beihai site in China is proceeding according to plan. The site is classified as assets held for sale from the end of 2023 onwards.
Guidance
Stora Enso’s full year 2024 adjusted EBIT is expected to be higher than for the full year 2023, EUR 342 million.
corruga.expert
