Q3 2024 Svenska Cellulosa Aktiebolaget SCA Earnings Call Transcript
Key Points
- Svenska Cellulosa AB (SVCBF) reported a 22% increase in forest sales and a 42% rise in EBITDA compared to Q3 2023, driven by higher prices and increased volumes.
- The company achieved an EBITDA of SEK2 billion, corresponding to an EBITDA margin of 38%, indicating strong profitability.
- Strategic investments in Obbola, Ulricehamn, and Gothenburg have been finalized, expected to contribute positively in the coming years.
- High harvesting levels from own forests have ensured a stable supply of wood raw materials, supporting industrial operations.
- The pulp segment saw a significant improvement with sales up 27% and EBIT increasing by over 200% year-on-year, primarily due to higher prices.
- The market for liquid biofuels and tall oil has weakened, with lower prices and bio premiums compared to the previous year.
- Higher raw material costs, particularly for wood, have negatively impacted profitability across several segments.
- The containerboard segment is experiencing high operational costs during the ramp-up phase of the new kraft line.
- There is a noted negative growth in the European manufacturing industry, affecting demand negatively.
- The renewable energy segment faced a 36% decrease in EBITDA due to lower market prices for tall oil and increased raw material costs.
Good morning, and welcome to this presentation of the SCA half yearly report for 2024. With me here today, I have President and CEO, Ulf Larsson; and CFO, Andreas Ewertz. And with that, over to you, Ulf.
Thank you Anders and also from my side. Good morning and a warm welcome to the presentation of our results for the third quarter. 2024.
We can state that markets for all fibre based products in all areas are stronger in Q3 '24. In comparison with the same quarter. Last year, we have had generally higher prices and stronger delivery volumes in energy. We have seen a negative market development in Europe for liquid biofuels also affecting tall oil prices when compared to Q3 '24 with the same period last year.
This is of course not least due to a reduced mandate for liquid biofuels in Sweden since 1st of January this year. Also, this quarter,
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