Q4 2024 Metsa Board Oyj Earnings Call Transcript
Key Points
- Metsa Board Oyj (FRA:MSRB) reported a 7% increase in full-year delivery volumes compared to 2023.
- The company received EUR7.5 million in insurance compensation related to the Kemi bioproduct mill explosion.
- Folding boxboard sales strengthened in each market compared to the previous year.
- The company has a solid financial position despite recent large growth investments.
- Metsa Board Oyj (FRA:MSRB) is making significant investments to improve energy efficiency and reduce carbon footprint.
- Q4 demand for paperboard was lower than expected, leading to production curtailments and temporary layoffs.
- The operating result for 2024 was significantly weaker than in 2023, at EUR69 million.
- The Kemi bioproduct mill shutdown had a roughly EUR9 million negative impact on operating results.
- Cash flow has been in steep decline, with free cash flow at EUR84 million negative for the year.
- The company faces challenges from increased import volumes of carton board from Asia, impacting market balance in Europe.
Good afternoon, everyone, and welcome to the presentation of Metsa Board's full year results for 2024. My name is Mika Joukio and I'm the CEO at Metsa Board. Here with me are our CFO, Henri Sederholm, and the Head of IR, Katri Sundström.
So let's go through the presentation first and then take the questions.
Let's start with the Q4 summary. This part seasonality demand for paperboard was even lower than expected. The delivery volumes mainly in FPP decreased from Q3 levels. The average sales prices of paperboard remained stable. Due to the low demand, we adjusted our production with temporary layoffs at mills. For the whole 2024, the most significant market related production curtailments and resulting layoffs took place in the last quarter.
In December, we also conducted new change negotiations for this year 2025. With this, we are preparing to continue production curtailments and possible layoffs also, this year, if paperboard demand does not improve. In market pub, a stable
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