STORA ENSO OYJ ADR R SH - SEOAY STOCK NEWS

Stora Enso has decided to halt the divestment process of its Beihai packaging board production site and forestry business in China, which was announced in December 2022. The company believes the value of keeping the assets exceeds potential sale value. The site will focus on operational excellence, cost optimization, and increasing production of liquid packaging board and premium grades. Stora Enso owns 80% of the Beihai operations, with local partners and IFC holding the remainder. The decision will impact financial reporting, with adjusted EBIT and IFRS operating results decreasing by EUR 7.5 million per quarter, totaling EUR 30 million for 2024, due to previously suspended depreciation.

Stora Enso, a leading provider of renewable products in packaging, biomaterials, and wooden construction, has announced the composition of its Shareholders' Nomination Board. The board, established to exist until otherwise decided, will annually prepare proposals for the company's Annual General Meeting regarding the election and remuneration of Board members and committees, as well as appointments of the Chair and Vice Chair.

The Nomination Board consists of Kari Jordan (Chair of Stora Enso's Board), Håkan Buskhe (Vice Chair), Jouko Karvinen (Chair of Solidium Oy's Board), and Marcus Wallenberg (Chair of FAM AB's Board), with Wallenberg elected as the Nomination Board's Chair. Solidium Oy and FAM AB were Stora Enso's two largest shareholders as of August 31, 2024.

Stora Enso Oyj reported improved profitability in Q2 2024, with adjusted EBIT increasing to EUR 161 million from EUR 37 million year-on-year. The company's adjusted EBIT margin rose to 7.0% from 1.6%. Despite a 3% decrease in sales to EUR 2,301 million, continuing operations grew by 1%.

Key highlights include:

• Progress in value creation programmes focusing on efficiencies
• Profit improvement programme targeting EUR 120 million in fixed cost savings
• Operating working capital decreased by EUR 576 million year-on-year
• Secured EUR 435 million long-term loan for Oulu mill investment

Stora Enso raised its full-year 2024 adjusted EBIT guidance, expecting it to be significantly higher than 2023's EUR 342 million. The company anticipates a gradual market recovery in 2024, supported by profitability initiatives, despite ongoing market uncertainties.

Stora Enso (SEOAY) has announced key leadership changes, appointing Niclas Rosenlew as the new Group Chief Financial Officer and Carolyn Wagner as Executive Vice President of the Packaging Solutions division. Both will join the company by January 2025, replacing Seppo Parvi and Ad Smit, respectively.

Rosenlew, currently CFO at SKF, brings extensive experience in finance and international organizations. Wagner, presently Divisional CEO of Packaging at Klingele Paper & Packaging Group, offers strong industry insight. These appointments aim to support Stora Enso's growth transition and enhance its packaging solutions business.

Stora Enso, a leading provider of renewable products in packaging, biomaterials, and wooden construction, reported sales of EUR 9.4 billion in 2023 and employs approximately 20,000 people globally.

On May 17, 2024, Stora Enso announced that CFO and Deputy CEO Seppo Parvi will leave the company during Q4 2024 to join a company outside the forest industry. Parvi, who joined in 2014, has been pivotal in transforming Stora Enso into a leader in renewable materials. President and CEO Hans Sohlström expressed gratitude for Parvi’s contributions. The search for Parvi’s successor will begin immediately. Stora Enso, a major player in packaging, biomaterials, and wooden construction, reported 2023 sales of EUR 9.4 billion and has 20,000 employees. Its shares are listed on Nasdaq Helsinki and Stockholm, and traded on OTC Markets in the USA (SEOAY).

Stora Enso has revised its full-year 2024 adjusted EBIT guidance, expecting it to exceed the previous estimate significantly, now forecasting a 50% or higher increase compared to 2023's EUR 342 million. This change is driven by successful profit improvement measures and favorable market conditions, particularly in consumer board and pulp demand. However, challenges persist in the Wood Products and Packaging Solutions divisions. The company warns of ongoing market uncertainties like high inflation and potential external disruptions. Stora Enso will publish its Half-year Report on 24 July 2024.

Stora Enso Oyj reported a decrease in sales by 20% in Q1 2024 compared to the previous year, with adjusted EBIT also decreasing. The company's profit improvement program has been successful, aiming to increase annual profit by EUR 120 million. Net debt increased due to investments, and the company plans to continue capital expenditure. Stora Enso anticipates a gradual market recovery in 2024, with challenges expected in the second quarter.

Stora Enso Oyj announces the publication dates for its financial reports in 2025, including the full-year 2024 financial statement, interim reports for January-March, January-June, and January-September 2025. The Annual Report 2025 will be released on February 12, 2025, with the Annual General Meeting scheduled for March 20, 2025.

BlackRock, Inc. increased its total holding in Stora Enso Oyj above the 5% threshold on 19 April 2024, according to the notification received. Stora Enso, a key player in the global bioeconomy, specializes in renewable products and sustainable solutions. The company has a significant presence in packaging, biomaterials, and wooden construction, with sales of EUR 9.4 billion in 2023. Stora Enso's shares are listed on multiple stock exchanges, including Nasdaq Helsinki and Nasdaq Stockholm, as well as OTC Markets in the USA.