Q3 2024 Metsa Board Oyj Earnings Call Transcript
Key Points
- Paperboard production volumes increased significantly, with over 100,000 tonnes more compared to Q3 last year.
- Insurance compensation of EUR23 million was recorded in Q3, partially offsetting losses from the Kemi mill explosion.
- The company renewed its dividend policy, aiming to pay at least half of the financial period's result as dividends.
- Folding boxboard sales have strengthened in each market area, particularly in EMEA.
- Metsa Board Oyj's strategy focuses on growing in fiber-based packaging materials and renewing industrial operations, with investments aimed at improving competitiveness and sustainability.
- Market pulp delivery volumes fell sharply in Q3, primarily due to weak demand in China.
- The operating result for January-September was EUR73 million, significantly lower than the EUR121 million in the same period last year.
- Cash flow has been unsatisfactory, with operating cash flow negative for most of the year.
- Net debt rose to approximately EUR350 million, the highest level in the last five years.
- The company expects Q4 operating results to be weaker than Q3, with potential impacts from seasonal demand slowdowns and rising costs.
Good afternoon, everyone, and welcome to the presentation of Metsä Board's results for January-September 2024. My name is Mika Joukio, and I'm the CEO at Metsä Board. Here with me is CFO, Henri Sederholm. So let's go through the presentation first and then take the questions.
Let's start with the Q3 summary. In the paperboard business, the third quarter remained pretty similar to the previous quarter. Our paperboard volumes increased slightly and prices remained flat. Paperboard production volumes increased by over 100,000 tonnes compared to Q3 last year and by almost 60,000 tonnes compared to the previous quarter.
Last year, volumes were curtailed by production adjustment measures and major investment shutdowns. And in Q2 this year, the production was impacted by political strikes in Finland and the gas explosion at Metsä Fibre's bioproduct mill in Kemi.
However, the past Q3 also included many planned maintenance shutdowns impacting not only volumes but also profitability.
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