Q2 2024 Stora Enso Oyj Earnings Call Transcript
Key Points
- Stora Enso Oyj (SEOAY) reported a significant increase in adjusted EBIT, more than quadrupling year on year, marking the third consecutive quarter of growth.
- The company successfully reduced its operating working capital to an all-time low, enhancing liquidity and financial flexibility.
- Stora Enso Oyj (SEOAY) achieved a substantial reduction in fixed costs, contributing to improved profitability and competitiveness.
- The forest division saw a strong performance with an 11% increase in sales, driven by higher wood prices and favorable harvesting conditions.
- The company is committed to sustainability, targeting net zero carbon emissions by 2040 and achieving a 46% reduction in production emissions since 2019.
- Group sales decreased by 3% due to structural changes, including site divestments and closures.
- The packaging solutions division faced challenges with a 12% decrease in sales due to lower pricing levels and industry overcapacity.
- High fiber costs, particularly in Finland, continue to pressure margins and impact profitability.
- The net debt to adjusted EBITDA ratio, although improved, remains above the targeted ratio of 2.0.
- The company faces ongoing challenges in the construction segment with weak demand for building solutions.
Thank you for joining us today. I'm Hans Sohlström, the President and CEO of Stora Enso. I'm here with our CFO, Seppo Parvi, to walk you through our performance and provide insights into our future outlook. We will also address any questions you might have towards the end.
Let's begin by directing our attention to this striking image. This is an image from the interior of our new head office soon to be prominent landmark in the main harbor of Helsinki. We have just started to move in.
This building not only represents our commitment to sustainable development but also stands as a testament to the innovative use of wood in modern architecture. For every tonne of wood utilized in constructions like this, we are able to sequester 1 tonne of carbon while simultaneously avoiding the emissions of at least another tonne of CO2 compared to traditional construction materials.
Today's presentation is headline, continued profit improvement with strengthened leverage ratio. I will
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