Q3 2024 Stora Enso Oyj Earnings Call Transcript
Key Points
- Stora Enso Oyj (SEOAY) reported a continued profit improvement for the fourth consecutive quarter, driven by price increases and cost-saving actions.
- The company's packaging materials, biomaterials, and forest segments performed well, contributing positively to the results.
- Group sales increased by 6%, reaching nearly EUR2.3 billion, driven by higher prices in most divisions.
- The adjusted EBIT increased significantly to EUR175 million from EUR21 million last year, marking the highest operational EBIT since Q1 2023.
- Stora Enso Oyj (SEOAY) is committed to sustainability, targeting net zero carbon emissions by 2040 and achieving 94% recyclability of its products.
- The packaging solutions division faced substantial margin pressure due to market overcapacity, resulting in a sales decline and negative adjusted EBIT.
- High fiber costs, particularly from wood, reduced margins and profitability by EUR80 million.
- The company remains above its target net debt to EBITDA ratio of 2.0, despite improvements.
- Market volatility, including high inflation and potential labor strikes, is expected to impact fourth-quarter profits.
- The wood products division struggled with continued weak markets and low construction activity, impacting demand.
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Hello, everyone and welcome to Stora Enso's third quarter, 2024 results presentation. Thank you for joining us today. I'm Hans Sohlström, the President and CEO of Stora Enso and I'm here with our CFO Seppo Parvi.
Today's preservation is titled Continued Growth and Earnings Improvement.
We will guide you through our performance and share insights into our outlook for the fourth quarter. We will also address any questions you might have to attend.
So now let's shift focus to the key highlights of the quarter.
We achieved a continued profit improvement compared to the same period last year, primarily driven by price increases and ongoing cost saving actions. And we are encouraged to report an increase in our adjusted ebit for the fourth consecutive quarter. Notably, our packaging materials, biomaterials and forest segments have performed well contributing positively to our result. However, we recognize the challenges faced by our packaging solution and good product segments and are focusing on
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