Q3 2024 Holmen AB Earnings Call Transcript
Key Points
- Holmen AB (HLMMF) achieved an operating profit of over $1 billion in the third quarter, driven by strong performance in board and paper segments.
- The company has maintained a strong financial position with a return on capital employed of 16% over the past year.
- Holmen AB (HLMMF) has successfully increased cash flow from forest activities by 60% over the last three years.
- The board and paper division showed a stellar performance, with a strong mix and good volumes contributing equally to EBIT.
- Holmen AB (HLMMF) has been able to distribute significant returns to shareholders through dividends and share buybacks, amounting to $6 billion.
- The company faces challenges due to high log costs, especially in the southern parts of Sweden, impacting the wood products segment.
- Electricity prices in Sweden were at a 20-year low, affecting revenue from renewable energy operations.
- The wood products market is experiencing weak demand and high log costs, leading to operational challenges.
- Holmen AB (HLMMF) anticipates a headwind in Q4 due to maintenance shutdowns and lower demand in the board and paper division.
- The company is facing a challenging market environment with oversupply and high costs, particularly in the sawmill operations in southern Sweden.
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Good morning, everybody and welcome to the interim report presentation for January September for the Holman Group. It's me, Henrik Sjölund and Anders Jernhall and we do the presentation together. And after that, we take all the questions you hopefully have, but we know you have a busy day today. So, let's get started.
We were able in the third quarter to reach an operating profit over a little bit more than $1 billion sick, which is in our view, a good result. Thanks to board and paper especially and also despite a bit challenging market situations and actually lack of wood to some extent as well.
Our industry, board, paper and wood products, if you just take a look and see what we have done. The last year, we have a return on capital employed of 16%. And over the last 10 years, we have been able to reach average 18% and our financial position is strong and then remind ourselves that with the last couple of years, we have been able to give distribute back to shareholders through dividends and also share buyback
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