UPM-Kymmene Oyj (OTCPK:UPMKF)
$ 27.2 0.074 (0.27%) Market Cap: 14.26 Bil Enterprise Value: 17.98 Bil PE Ratio: 19.11 PB Ratio: 1.23 GF Score: 68/100
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Half Year 2024 UPM-Kymmene Oyj Earnings Call Transcript

Jul 23, 2024 / 10:15AM GMT
Release Date Price: $33.51 (-1.61%)

Key Points

Positve
  • Comparable EBIT increased by 60% from last year, indicating strong financial performance.
  • Paso de los Toros pulp mill reached full capacity ahead of schedule, enhancing production capabilities.
  • Demand for products, including global pulp and self-adhesive labels, improved significantly from last year.
  • Successful negotiation of new business-specific CLAs in Finland, supporting long-term competitiveness.
  • Acquisition of Grafityp to expand in the graphic solutions market, expected to accelerate growth and strengthen competitive position.
Negative
  • Unusually high maintenance activities in Q2, impacting performance with a cost of EUR130 million.
  • Political strike in Finland negatively impacted profits by approximately EUR40 million.
  • Energy business area experienced a weak quarter due to low electricity prices and high maintenance activity.
  • Biofuels business faced challenges due to low-priced fuel imports from China and upstream emission reductions, leading to weaker performance.
  • Communication papers profitability decreased due to lower delivery volumes and increased fiber costs.
Massimo Reynaudo
UPM-Kymmene Oyj - President, Chief Executive Officer, Member of the Group Executive Team

Hello, everyone. Welcome to UPM's quarter two 2024 results webcast. My name is Massimo Reynaudo. And I am the CEO of UPM. Here with me is Tapio Korpeinen, the CFO.

Tapio Korpeinen
UPM-Kymmene Oyj - Chief Financial Officer, Executive Vice President - UPM Energy, Member of the Group Executive Team

Hello, all on the line.

Massimo Reynaudo
UPM-Kymmene Oyj - President, Chief Executive Officer, Member of the Group Executive Team

We'll start by discussing the quarter two results and the outlook for 2024. And then, we'll cover a few strategic steps we have taken to accelerate our future growth.

In quarter two, our comparable EBIT increased by 60% from last year, in line with our expectations. To put this in the proper perspective, there are three main elements to look at. The market situation is the first. The demand for our products has clearly improved from last year. Although the recovery moderated

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