Correction: Stora Enso Financial Statement Release 2024: Improved results in challenging markets
Stora Enso reported improved financial results for Q4/2024 despite challenging market conditions. Sales increased 7% to EUR 2,322 million, with adjusted EBIT rising to EUR 121 million from EUR 51 million year-on-year. The company's profit improvement programme achieved EUR 110 million in fixed cost reductions, approaching its EUR 120 million target.
Key highlights include a 53% reduction in greenhouse gas emissions, surpassing the 2030 target, and progress on the consumer board investment at the Oulu site. The company plans to sell approximately 12% of its Swedish forest assets, valued at EUR 6.3 billion.
For 2024, full-year sales were EUR 9,049 million, with adjusted EBIT of EUR 598 million, marking a 75% increase. The Board proposed a dividend of EUR 0.25 per share. Looking ahead, Stora Enso expects demand to remain subdued and volatile, with high wood prices persisting throughout 2025. The company forecasts approximately EUR 100 million negative impact on adjusted EBIT in 2025, primarily in H1, due to the Oulu packaging board line ramp-up.
Stora Enso ha riportato risultati finanziari migliorati per il quarto trimestre del 2024 nonostante le difficili condizioni di mercato. Le vendite sono aumentate del 7% a 2.322 milioni di EUR, con un EBIT rettificato salito a 121 milioni di EUR rispetto ai 51 milioni dell'anno precedente. Il programma di miglioramento dei profitti dell'azienda ha raggiunto 110 milioni di EUR in riduzioni dei costi fissi, avvicinandosi al suo obiettivo di 120 milioni di EUR.
I principali punti salienti includono una riduzione del 53% delle emissioni di gas serra, superando l'obiettivo del 2030, e progressi sull'investimento nel cartone per consumatori presso il sito di Oulu. L'azienda pianifica di vendere circa il 12% dei suoi beni forestali svedesi, valutati 6,3 miliardi di EUR.
Per il 2024, le vendite annuali si sono attestate a 9.049 milioni di EUR, con un EBIT rettificato di 598 milioni di EUR, segnando un aumento del 75%. Il Consiglio ha proposto un dividendo di 0,25 EUR per azione. Guardando al futuro, Stora Enso prevede che la domanda rimarrà contenuta e volatile, con prezzi elevati del legno che persisteranno fino al 2025. L'azienda prevede un impatto negativo di circa 100 milioni di EUR sull'EBIT rettificato nel 2025, principalmente nel primo semestre, a causa dell'incremento della produzione della linea di cartone per imballaggio di Oulu.
Stora Enso reportó resultados financieros mejorados para el cuarto trimestre de 2024 a pesar de las desafiantes condiciones del mercado. Las ventas aumentaron un 7% a 2.322 millones de EUR, con un EBIT ajustado que subió a 121 millones de EUR desde 51 millones de EUR en comparación con el año anterior. El programa de mejora de beneficios de la empresa logró 110 millones de EUR en reducciones de costos fijos, acercándose a su objetivo de 120 millones de EUR.
Los aspectos destacados incluyen una reducción del 53% en las emisiones de gases de efecto invernadero, superando la meta de 2030, y avances en la inversión en cartones para consumidores en el sitio de Oulu. La empresa planea vender aproximadamente el 12% de sus activos forestales suecos, valorados en 6.3 mil millones de EUR.
Para 2024, las ventas anuales fueron de 9.049 millones de EUR, con un EBIT ajustado de 598 millones de EUR, lo que marca un aumento del 75%. La Junta propuso un dividendo de 0,25 EUR por acción. Mirando hacia adelante, Stora Enso espera que la demanda continúe siendo moderada y volátil, con precios de madera altos que persistirán durante 2025. La empresa anticipa que habrá un impacto negativo de aproximadamente 100 millones de EUR en el EBIT ajustado en 2025, principalmente en el primer semestre, debido al aumento de la producción en la línea de cartón para embalaje de Oulu.
Stora Enso는 어려운 시장 상황에도 불구하고 2024년 4분기 재무 실적이 개선되었다고 보고했습니다. 매출은 7% 증가하여 23억 2,200만 유로에 달했으며, 조정 EBIT는 지난해 5,100만 유로에서 1억 2,100만 유로로 상승했습니다. 이 회사의 수익 개선 프로그램은 고정 비용을 1억 1,000만 유로 절감하는 성과를 이루어 1억 2,000만 유로의 목표에 가까워졌습니다.
주요 하이라이트에는 온실가스 배출량의 53% 감소가 포함되어 있으며, 이는 2030년 목표를 초과 달성한 수치입니다. Oulu 부지에서 소비재 보드 투자에 대한 진전도 있었습니다. 스토라 엔소는 약 12%의 스웨덴 산림 자산을 63억 유로로 평가하여 매각할 계획입니다.
2024년 전체 연간 매출은 90억 4,900만 유로, 조정 EBIT는 5억 9,800만 유로로 75% 증가했습니다. 이사회는 주당 0.25 유로의 배당금을 제안했습니다. 앞으로 스토라 엔소는 수요가 약세를 유지하고 변동성이 클 것으로 예상하며, 2025년까지 고가의 목재 가격이 지속될 것이라고 예상합니다. 2025년에는 Oulu 포장 보드 라인의 가동 증가로 인해 조정 EBIT에 약 1억 유로의 부정적인 영향을 미칠 것으로 예상됩니다.
Stora Enso a annoncé des résultats financiers améliorés pour le quatrième trimestre 2024, malgré des conditions de marché difficiles. Les ventes ont augmenté de 7% pour atteindre 2.322 millions EUR, avec un EBIT ajusté passant de 51 millions EUR à 121 millions EUR d'une année sur l'autre. Le programme d'amélioration des bénéfices de l'entreprise a permis des réductions de coûts fixes s'élevant à 110 millions EUR, se rapprochant ainsi de son objectif de 120 millions EUR.
Parmi les points clés figurent une réduction de 53% des émissions de gaz à effet de serre, dépassant l'objectif de 2030, ainsi que des progrès dans l'investissement dans le carton pour consommateurs sur le site d'Oulu. L'entreprise prévoit de vendre environ 12% de ses actifs forestiers suédois, dont la valeur est de 6,3 milliards EUR.
Pour 2024, les ventes annuelles s'élevaient à 9.049 millions EUR, avec un EBIT ajusté de 598 millions EUR, marquant une augmentation de 75%. Le Conseil a proposé un dividende de 0,25 EUR par action. En regardant vers l'avenir, Stora Enso s'attend à ce que la demande reste faible et volatile, avec des prix du bois élevés qui persisteront jusqu'en 2025. L'entreprise prévoit un impact négatif d'environ 100 millions EUR sur l'EBIT ajusté en 2025, principalement au premier semestre, en raison de l'augmentation de la production sur la ligne de carton d'emballage à Oulu.
Stora Enso meldete für das 4. Quartal 2024 verbesserte finanzielle Ergebnisse trotz herausfordernder Marktbedingungen. Der Umsatz stieg um 7% auf 2.322 Millionen EUR, während das bereinigte EBIT von 51 Millionen EUR auf 121 Millionen EUR im Jahresvergleich anstieg. Das Profitverbesserungsprogramm des Unternehmens erzielte Einsparungen von 110 Millionen EUR bei den Fixkosten und näherte sich damit dem Ziel von 120 Millionen EUR.
Zu den wichtigsten Höhepunkten gehören eine Reduzierung der Treibhausgasemissionen um 53%, die das Ziel von 2030 übertrifft, sowie Fortschritte bei der Investition in Verbraucherprodukte am Standort Oulu. Das Unternehmen plant, etwa 12% seiner schwedischen Waldressourcen, die mit 6,3 Milliarden EUR bewertet werden, zu verkaufen.
Für 2024 betrugen die Gesamtjahresverkäufe 9.049 Millionen EUR, wobei das bereinigte EBIT bei 598 Millionen EUR lag, was einer Steigerung von 75% entspricht. Der Vorstand schlug eine Dividende von 0,25 EUR pro Aktie vor. Ausblickend erwartet Stora Enso, dass die Nachfrage gedämpft und volatil bleibt, wobei hohe Holzpreise bis 2025 anhalten werden. Das Unternehmen prognostiziert einen negativieffekt von etwa 100 Millionen EUR auf das bereinigte EBIT im Jahr 2025, hauptsächlich im ersten Halbjahr, aufgrund des Hochlaufs der Verpackungsplattenlinie in Oulu.
- None.
- None.
STORA ENSO OYJ FINANCIAL STATEMENT RELEASE 11 February 2025 at 9:00 EET
Q4/2024 (year-on-year)
- Sales increased by
7% toEUR 2,322 (2,174) million. - Adjusted EBIT increased to
EUR 121 (51) million. - Adjusted EBIT margin increased to
5.2% (2.3% ). - Operating result (IFRS) was
EUR -279 (-326) million, including items affecting comparability ofEUR -768 million related mainly to impairments booked as part of the annual impairment review, and fair valuations and other non-operational items ofEUR 368 million mostly from increase in the fair value of the standing growing trees (biological assets). - Earnings per share (EPS) were
EUR -0.43 (-0.36) and EPS excl. fair valuations (FV) wasEUR -0.81 (-0.64). - The fair value of the forest assets increased to
EUR 8.9 (8.7) billion, equivalent toEUR 11.28 per share. - Cash flow from operations amounted to
EUR 325 (323) million. Cash flow after investing activities wasEUR 88 (-9) million. - Net debt increased by
EUR 540 million toEUR 3,707 (3,167) million, mainly due to the board investment at the Oulu site. - The net debt to adjusted EBITDA (LTM) ratio improved to 3.0 (3.2). The target to keep the ratio below 2.0 remains.
Year 2024 (year-on-year)
- Sales were
EUR 9,049 (9,396) million. - Adjusted EBIT was
EUR 598 (342) million. - Operating result (IFRS) was
EUR 93 (-322) million. - Earnings per share (EPS) were
EUR -0.17 (-0.45) and EPS excl. fair valuations (FV) wasEUR -0.56 (-0.73). - Cash flow from operations amounted to
EUR 1,187 (954) million. Cash flow after investing activities wasEUR 74 (-40) million. - Adjusted ROCE excluding the Forest division increased to
3.6% (1.0% ), the target being above13% .
Key highlights
- The profit improvement programme, initiated in Q1/2024 with a target of
EUR 120 million in annual gross fixed cost savings, progressed well, with the full impact realised from the start of 2025. During the year, fixed costs decreased byEUR 110 million . - Stora Enso signed an agreement to acquire the Finnish sawmill company Junnikkala Oy to secure a cost-efficient wood supply to the packaging board site in Oulu,
Finland , and to support the wood products business with new production assets. - Stora Enso achieved a
53% reduction in Scope 1 and 2 greenhouse gas emissions by year-end, surpassing the 2030 target of a50% reduction from the 2019 base year. - The consumer board investment at the Oulu site in
Finland is progressing on schedule. Production is estimated to start in the coming months with full capacity estimated to be reached during 2027. - Stora Enso intends to sell approximately
12% of its total forest assets of 1.4 million hectares inSweden , with a fair value ofEUR 6.3 billion . The sales process is ongoing.
Proposed dividend
The Board of Directors will propose a dividend of
Outlook
NB: As a change to prior practices, Stora Enso will continue to provide comments on its outlook but not a specific annual EBIT guidance. This aligns with international practice.
We expect demand to remain subdued and volatile, affected by macroeconomic confidence and continued geopolitical uncertainty. Wood prices are expected to remain at high levels. Throughout 2025, we continue with our actions to reduce costs and strengthen operational and commercial excellence with the aim to improve operational performance and competitiveness.
In the first quarter of 2025, maintenance costs are expected to decrease to
During the full year 2025, the Group's adjusted EBIT is anticipated to be adversely impacted by approximately
The Group's capital expenditure forecast for the full year 2025 is EUR 730–790 million.
Packaging Materials
The fiber packaging market is currently challenged by soft demand due to slow economic recovery, low operating rates and uncertain visibility. Consumer board volumes in Q1/2025 are anticipated to increase following planned maintenance stops and seasonally low demand in Q4/2024. With continued weak demand and excess capacity, containerboard operating rates in fresh fiber are expected to improve but still remain at a relatively low level. Recycled containerboard volumes are expected to remain stable. High wood fiber costs continue to put pressure on margins. The division's average price level is expected to remain stable quarter-on-quarter.
Packaging Solutions
Market demand continues to be unpredictable and volatile with vast overcapacity. The first quarter typically represents a low season for the division. Volumes in Q1/2025 in Central, Northern and
Biomaterials
The pulp market is currently positioned near its cyclical low. Leading pulp producers have announced price increases, with potential effects likely becoming more apparent in Q2/2025. Demand outlook is uncertain driven by economic activity and geopolitical risks.
Wood Products
The overall outlook for Q1/2025 is expected to remain relatively unchanged from Q4/2024, characterised by low and stable demand for classic sawn in
Forest
Wood demand in the Nordics is expected to remain robust in Q1/2025, despite reductions in pulpwood consumption from curtailments in packaging and pulp markets, as forest companies are minimising costly imports.
Key figures
EUR million | Q4/24 | Q4/23 | Change % Q4/24–Q4/23 | Q3/24 | Change % Q4/24–Q3/24 | 2024 | 2023 | Change % 2024–2023 |
Sales | 2,322 | 2,174 | 6.8 % | 2,261 | 2.7 % | 9,049 | 9,396 | -3.7 % |
Adjusted EBITDA | 285 | 212 | 34.4 % | 328 | -13.1 % | 1,223 | 989 | 23.6 % |
Adjusted EBIT | 121 | 51 | 138.6 % | 175 | -31.3 % | 598 | 342 | 74.8 % |
Adjusted EBIT margin | 5.2 % | 2.3 % | 7.8 % | 6.6 % | 3.6 % | |||
Operating result (IFRS) | -279 | -326 | 14.4 % | 139 | n/m | 93 | -322 | 128.8 % |
Result before tax (IFRS) | -353 | -378 | 6.6 % | 98 | n/m | -118 | -495 | 76.2 % |
Net result for the period (IFRS) | -379 | -325 | -16.5 % | 84 | n/m | -183 | -431 | 57.4 % |
Net debt | 3,707 | 3,167 | 17.1 % | 3,528 | 5.1 % | 3,707 | 3,167 | 17.1 % |
Forest assets¹ | 8,894 | 8,731 | 1.9 % | 8,758 | 1.6 % | 8,894 | 8,731 | 1.9 % |
Adjusted return on capital employed (ROCE), LTM² | 4.3 % | 2.4 % | 3.7 % | 4.3 % | 2.4 % | |||
Adjusted ROCE excl. Forest division, LTM² | 3.6 % | 1.0 % | 2.7 % | 3.6 % | 1.0 % | |||
Earnings per share (EPS) excl. FV, EUR | -0.81 | -0.64 | -26.4 % | 0.10 | n/m | -0.56 | -0.73 | 23.1 % |
EPS (basic), EUR | -0.43 | -0.36 | -18.5 % | 0.11 | n/m | -0.17 | -0.45 | 62.0 % |
Net debt to LTM² adjusted EBITDA ratio | 3.0 | 3.2 | 3.1 | 3.0 | 3.2 | |||
Average number of employees (FTE) | 18,731 | 20,047 | -6.6 % | 19,364 | -3.3 % | 19,233 | 20,822 | -7.6 % |
1 Total forest assets value, including leased land and Stora Enso's share of Tornator.
2 LTM=Last 12 months
Stora Enso's President and CEO Hans Sohlström comments on the fourth quarter 2024 results:
2024 marked a year of substantial progress for Stora Enso, demonstrating our commitment to building a foundation for sustained profitable growth. Our actions to improve sourcing and operational efficiency as well as commercial excellence, and the implementation of cost reductions across the Company have borne fruit, enhancing our profitability and competitiveness. Despite facing macroeconomic uncertainties, fluctuations in market demand, and rising wood costs, these actions have progressed well.
In 2024, we increased our adjusted EBIT by
In the fourth quarter of 2024, adjusted EBIT increased by
Our focused actions to reduce operating working capital resulted in an all-time low operating working capital of
The fair value of our total forest assets reached
We are also proud to announce that we have surpassed our 2030 target by achieving a
The
We need to continue with our actions to make Stora Enso more efficient and stronger. While short-term demand outlook continues to be subdued, we continue our systematic and structured work to reduce our fixed and variable costs as well as improve operative performance during 2025.
In the longer term, Stora Enso is poised to leverage the recent big investments and cost reductions to further strengthen our market position, strive to deliver exceptional service to our customers, and continue our journey of sustainable development towards our long-term financial targets and improved shareholder value creation.
I would like to thank all our employees, customers, suppliers, and shareholders for their commitment and support during 2024. I am exceptionally proud of our team's resilience, engagement and dedication, which have been crucial in navigating this year's challenges and setting the stage for future successes.
Webcast for analysts, investors, and media
Analysts, investors, and media are invited to participate in the webcast with a teleconference today at 11:00 am EET (10:00 CET, 9:00 BST, 4:00 EDT). The results will be presented by President and CEO Hans Sohlström and CFO Niclas Rosenlew. The presentation can be followed live via the link: https://stora-enso-oyj-financial-statement-for-full-year-2024.open-exchange.net/registration
During the webcast presentation, analysts and investors will also have the possibility to ask questions. To participate in the teleconference, please choose the "Teleconference" option on the homepage of the webcast. Recording of the webcast will be available shortly after the event at the same address and at storaenso.com/en/investors/interim-report
Media representatives who wish to ask questions after the publication of the report may contact Carl Norell, SVP Corporate Communications at Stora Enso on +46 72 241 0349.
This release is a summary of Stora Enso's Financial Statements Release 2024. The complete report is attached to this release as a pdf file. It is also available on the company website at storaenso.com/en/investors/interim-report.
Media enquiries:
Carl Norell
SVP Corporate Communications
tel. +46 72 241 0349
Investor enquiries:
Anna-Lena Åström
SVP Investor Relations
tel. +46 70 210 7691
The forest is at the heart of Stora Enso and we believe that everything made from fossil-based materials today can be made from a tree tomorrow. We are the leading provider of renewable products in packaging, biomaterials, and wooden construction, and one of the largest private forest owners in the world. Stora Enso has approximately 19,000 employees and our sales in 2024 were
This information was brought to you by Cision http://news.cision.com
The following files are available for download:
STORAENSO_RESULTS_Q424_ENG |
View original content:https://www.prnewswire.com/news-releases/correction-stora-enso-financial-statement-release-2024-improved-results-in-challenging-markets-302373205.html
SOURCE Stora Enso Oyj
FAQ
What were Stora Enso's (SEOAY) key financial results for Q4 2024?
How much cost savings did Stora Enso achieve in 2024 through its profit improvement programme?
What is Stora Enso's dividend proposal for 2024?
What is the expected impact of the Oulu packaging board line ramp-up on Stora Enso's 2025 earnings?
What percentage of Swedish forest assets is Stora Enso planning to sell?
