Stora Enso Interim Report January-March 2025: Consistent progress in improving performance
Stora Enso reported strong Q1/2025 performance with sales increasing 9% to EUR 2,362 million and adjusted EBIT rising 17.7% to EUR 175 million. The company achieved an improved EBIT margin of 7.4%, marking the fourth consecutive quarter of year-on-year growth.
Key developments include the start of production at the new consumer packaging board line in Oulu, Finland, and regulatory approval for the Junnikkala Oy acquisition. The company announced plans to implement a new organizational structure from July 2025, expanding from five to seven business areas with focus on renewable packaging.
Financial highlights include earnings per share of EUR 0.14, forest assets value increase to EUR 9.3 billion, and improved net debt to adjusted EBITDA ratio of 3.2. The company declared a dividend of EUR 0.25 per share for 2024, while noting market challenges due to macroeconomic uncertainty and lower consumer sentiment.
Stora Enso ha registrato un solido primo trimestre 2025 con vendite in crescita del 9% a 2.362 milioni di euro e un EBIT rettificato in aumento del 17,7% a 175 milioni di euro. L'azienda ha raggiunto un miglioramento del margine EBIT al 7,4%, segnando il quarto trimestre consecutivo di crescita su base annua.
Tra gli sviluppi principali, l'avvio della produzione della nuova linea di cartone per imballaggi consumer a Oulu, Finlandia, e l'approvazione normativa per l'acquisizione di Junnikkala Oy. La società ha annunciato l'intenzione di adottare una nuova struttura organizzativa a partire da luglio 2025, ampliando da cinque a sette aree di business con un focus sugli imballaggi rinnovabili.
I dati finanziari evidenziano un utile per azione di 0,14 euro, un aumento del valore degli asset forestali a 9,3 miliardi di euro e un miglioramento del rapporto debito netto/EBITDA rettificato a 3,2. La società ha dichiarato un dividendo di 0,25 euro per azione per il 2024, pur segnalando sfide di mercato dovute all'incertezza macroeconomica e a un calo del sentiment dei consumatori.
Stora Enso reportó un sólido desempeño en el primer trimestre de 2025 con ventas que aumentaron un 9% hasta 2.362 millones de euros y un EBIT ajustado que creció un 17,7% hasta 175 millones de euros. La compañía alcanzó un margen EBIT mejorado del 7,4%, marcando el cuarto trimestre consecutivo de crecimiento interanual.
Entre los desarrollos clave destacan el inicio de la producción en la nueva línea de cartón para embalaje de consumo en Oulu, Finlandia, y la aprobación regulatoria para la adquisición de Junnikkala Oy. La empresa anunció planes para implementar una nueva estructura organizativa a partir de julio de 2025, ampliando de cinco a siete áreas de negocio con un enfoque en embalajes renovables.
Los aspectos financieros incluyen ganancias por acción de 0,14 euros, un aumento del valor de los activos forestales a 9.300 millones de euros y una mejora en la ratio deuda neta/EBITDA ajustado a 3,2. La compañía declaró un dividendo de 0,25 euros por acción para 2024, aunque advirtió sobre desafíos en el mercado debido a la incertidumbre macroeconómica y un menor sentimiento del consumidor.
Stora Enso는 2025년 1분기에 매출이 9% 증가한 23억 6,200만 유로, 조정 EBIT는 17.7% 상승한 1억 7,500만 유로를 기록하며 강력한 실적을 보고했습니다. 회사는 7.4%의 개선된 EBIT 마진을 달성하며 4분기 연속 전년 대비 성장을 이어갔습니다.
주요 발전 사항으로는 핀란드 오울루에 위치한 새로운 소비자 포장용 보드 생산 라인 가동 시작과 Junnikkala Oy 인수에 대한 규제 승인 획득이 있습니다. 회사는 2025년 7월부터 새로운 조직 구조를 도입하여 기존 5개 사업 부문에서 7개 부문으로 확대하고 재생 가능 포장재에 중점을 둘 계획임을 발표했습니다.
재무 하이라이트로는 주당 순이익 0.14유로, 산림 자산 가치가 93억 유로로 증가, 순부채 대비 조정 EBITDA 비율이 3.2로 개선된 점이 포함됩니다. 회사는 2024년 주당 0.25유로의 배당금을 선언했으며, 거시경제 불확실성과 소비자 심리 위축으로 인한 시장 도전을 언급했습니다.
Stora Enso a annoncé de solides résultats pour le premier trimestre 2025, avec des ventes en hausse de 9 % à 2,362 milliards d'euros et un EBIT ajusté en progression de 17,7 % à 175 millions d'euros. L'entreprise a atteint une marge EBIT améliorée de 7,4 %, marquant ainsi le quatrième trimestre consécutif de croissance annuelle.
Parmi les développements clés figurent le démarrage de la production sur la nouvelle ligne de carton pour emballages grand public à Oulu, en Finlande, et l'approbation réglementaire pour l'acquisition de Junnikkala Oy. La société a annoncé son intention de mettre en place une nouvelle structure organisationnelle à partir de juillet 2025, en élargissant de cinq à sept secteurs d'activité, avec un accent sur les emballages renouvelables.
Les points financiers importants incluent un bénéfice par action de 0,14 EUR, une augmentation de la valeur des actifs forestiers à 9,3 milliards d'euros, et une amélioration du ratio dette nette/EBITDA ajusté à 3,2. L'entreprise a déclaré un dividende de 0,25 EUR par action pour 2024, tout en soulignant les défis du marché liés à l'incertitude macroéconomique et à un moindre sentiment des consommateurs.
Stora Enso verzeichnete im ersten Quartal 2025 eine starke Leistung mit einem Umsatzanstieg von 9 % auf 2.362 Millionen Euro und einem um 17,7 % gestiegenen bereinigten EBIT von 175 Millionen Euro. Das Unternehmen erreichte eine verbesserte EBIT-Marge von 7,4 % und verzeichnete damit das vierte Quartal in Folge ein Wachstum im Jahresvergleich.
Zu den wichtigsten Entwicklungen zählen der Produktionsstart der neuen Konsumverpackungskarton-Linie in Oulu, Finnland, sowie die behördliche Genehmigung für die Übernahme von Junnikkala Oy. Das Unternehmen kündigte Pläne an, ab Juli 2025 eine neue Organisationsstruktur einzuführen, die von fünf auf sieben Geschäftsbereiche erweitert wird, mit Fokus auf erneuerbare Verpackungen.
Zu den finanziellen Highlights gehören ein Gewinn je Aktie von 0,14 EUR, ein Anstieg des Wertes der Forstvermögenswerte auf 9,3 Milliarden EUR sowie eine verbesserte Netto-Verschuldungsquote zum bereinigten EBITDA von 3,2. Das Unternehmen erklärte eine Dividende von 0,25 EUR je Aktie für 2024 und wies auf Markt Herausforderungen aufgrund makroökonomischer Unsicherheiten und einer geringeren Verbraucherstimmung hin.
- Sales increased 9% to EUR 2,362 million year-over-year
- Adjusted EBIT improved 17.7% to EUR 175 million
- All divisions achieved positive adjusted EBIT for first time since Q3 2022
- Net debt to EBITDA ratio improved from 4.0x to 3.2x
- Forest assets value increased to EUR 9.3 billion
- EUR 100 million negative impact expected from Oulu board line ramp-up in 2025
- Market demand remains subdued and volatile
- Maintenance costs expected to increase by EUR 20 million in Q2/2025
- High fiber costs continue to impact operations
- Operating cash flow decreased to EUR 192 million from EUR 269 million
STORA ENSO OYJ INTERIM REPORT 25 April 2025 at 8:30 EEST
Q1/2025 (year-on-year)
- Sales increased by
9% toEUR 2,362 (2,164) million, mainly due to higher prices and deliveries. The average sales growth (LTM YoY) was4.6% (-23.8% ). - Adjusted EBIT increased, for the fourth consecutive quarter compared year-on-year, to
EUR 175 (149) million. Adjusted EBIT margin increased to7.4% (6.9% ). Higher prices, volumes and positive impacts from net currency exchange rates and depreciations more than offset higher fiber costs. - Operating result (IFRS) was
EUR 171 (141) million, including items affecting comparability ofEUR -11 million , and fair valuations and other non-operational items ofEUR 7 million . - Earnings per share were
EUR 0.14 (0.10) and earnings per share excl. fair valuations (FV) wereEUR 0.13 (0.08). - The fair value of the forest assets increased to
EUR 9.3 (8.6) billion, equivalent toEUR 11.74 per share. - Cash flow from operations amounted to
EUR 192 (269) million, impacted by higher sales increasing trade receivables, and build-up of inventories partly related to the ramp-up of the new consumer board line at the Oulu site. - The net debt to adjusted EBITDA (LTM) ratio improved to 3.2 (4.0).
- Adjusted ROCE excluding the Forest division (LTM) increased to
3.8% (-0.1% ), the target being above13% .
Key highlights
- The new consumer packaging board line at the Oulu site in
Finland started production ramp-up in March. The line is expected to reach EBITDA breakeven by the year-end 2025 and full capacity during 2027. - Stora Enso has received regulatory approval from the competition authorities to proceed with the acquisition of the Finnish sawmill company Junnikkala Oy, announced in October 2024. The transaction is expected to be finalised by early May 2025.
- As announced today, Stora Enso plans to implement a new, leaner and flatter organisational structure as of 1 July 2025, dividing its packaging business into four main areas with a reinforced focus on renewable packaging as the core business; Food Service and Liquid Board, Cartonboard, Containerboard, and Packaging Solutions. The new structure would expand the total business areas from five to seven removing one management layer, and represents a further decentralisation of P&L responsibility closer to customers and operations.
- The Annual General Meeting decided to distribute a dividend of
EUR 0.25 per share for the year 2024 in two instalments, on 2 April 2025 and 2 October 2025. - Stora Enso intends to sell approximately
12% of its total forest assets of 1.4 million hectares inSweden . The sales process is ongoing. - Stora Enso was recognised for its leadership in corporate transparency and performance on climate action by environmental non-profit CDP, securing a place on 2024 Climate Change 'A List'.
Outlook and focus for 2025
Stora Enso expects market demand to remain subdued and volatile, affected by heightened macroeconomic and geopolitical uncertainty due to trade-related tensions, and lower consumer sentiment.
Guidance
Stora Enso anticipates that its adjusted EBIT for the full year of 2025 will be adversely impacted by approximately
The Group's capital expenditure forecast for the full year of 2025 is EUR 730–790 million.
In the second quarter of 2025, maintenance costs are expected to increase by approximately
Fiber costs are expected to remain at high levels.
Focus for 2025
- Continue to build a leaner, more agile organisation to enhance customer and business orientation, and operational efficiency.
- Plan to implement organisational restructuring to streamline operations and increase efficiency in core business areas, focusing on renewable packaging.
- Transition to a more integrated business model across Nordic packaging board mills to improve the entire value chain and customer-centricity.
- Enhance business accountability and reduce complexity by transitioning from five autonomous divisions to seven streamlined business areas with effective group-level support.
- Ramp up production and leverage the
1-billion-euro investment in the new packaging board line at the integrated mill in Oulu,Finland , to strengthen Stora Enso's competitive position.
Outlook from Q1/2025 to Q2/2025, across the divisions
In the Packaging Materials division, the containerboard market is expected to remain stable with ongoing price increases. Consumer board demand is expected to be seasonally stronger, and products from Stora Enso's new consumer packaging board line will gradually increase delivery volumes.
The Packaging Solutions division anticipates increased demand in
The Biomaterials division predicts stable demand with higher prices driven by a tightening supply, partly offset by weaker USD.
For Wood Products, no structural demand improvement is expected, though seasonal factors and continued cost mitigation is expected to provide support.
The Forest division is expected to maintain robust financial performance.
Key figures
EUR million | Q1/25 | Q1/24 | Change % Q1/25–Q1/24 | Q4/24 | Change % Q1/25–Q4/24 | 2024 |
Sales | 2,362 | 2,164 | 9.1 % | 2,322 | 1.7 % | 9,049 |
Adjusted EBITDA | 320 | 298 | 7.3 % | 285 | 12.1 % | 1,223 |
Adjusted EBIT³ | 175 | 149 | 17.7 % | 121 | 45.5 % | 598 |
Adjusted EBIT margin³ | 7.4 % | 6.9 % | 5.2 % | 6.6 % | ||
Operating result³ (IFRS) | 171 | 141 | 21.7 % | -279 | 161.4 % | 93 |
Result before tax³ (IFRS) | 132 | 94 | 40.8 % | -353 | 137.4 % | -118 |
Net result for the period³ (IFRS) | 107 | 77 | 40.0 % | -379 | 128.3 % | -183 |
Forest assets1,3 | 9,260 | 8,625 | 7.4 % | 8,894 | 4.1 % | 8,894 |
Adjusted return on capital employed (ROCE), LTM²³ | 4.4 % | 1.8 % | 4.3 % | 4.3 % | ||
Adjusted ROCE excl. Forest division, LTM²³ | 3.8 % | -0.1 % | 3.6 % | 3.6 % | ||
Earnings per share (EPS) excl. FV, EUR³ | 0.13 | 0.08 | 59.0 % | -0.81 | 116.3 % | -0.56 |
EPS (basic), EUR³ | 0.14 | 0.10 | 43.5 % | -0.43 | 133.3 % | -0.17 |
Net debt to LTM² adjusted EBITDA ratio | 3.2 | 4.0 | 3.0 | 3.0 | ||
Average number of employees (FTE) | 18,512 | 19,412 | -4.6 % | 18,731 | -1.2 % | 19,233 |
1 Total forest assets value, including leased land and Stora Enso's share of Tornator. | ||||||
2 LTM=Last 12 months | ||||||
3 Q1 2024 restated in Q3 2024, please see the interim report for Q3 2024 for more details. | ||||||
Stora Enso's President and CEO Hans Sohlström comments on the first quarter 2025 results:
During the first quarter of 2025, we continued to make good progress in building a stronger and more profitable Stora Enso. We recorded a robust adjusted EBIT of
This marks the fourth consecutive quarter with a year-on-year result improvement. Furthermore, in the first quarter, all divisions achieved positive adjusted EBIT for the first time since the third quarter of 2022. Group sales rose by
In our Packaging Materials division, we saw a slight recovery in demand, albeit at low levels, particularly in
Our Biomaterials division delivered stable results through higher volumes despite headwinds with lower pulp prices and volumes, along with higher variable costs both year-on-year and quarter-on-quarter. The Wood Products division reached a break-even adjusted EBIT. This progress was driven by strong efficiency improvement actions coupled with somewhat improved demand, while still from a low level due to a continued weak construction market. In our Forest division, the high demand and tight markets for wood and fresh fiber continued, leading to another record-high quarterly EBIT.
Overall, the markets remain volatile, with low consumer sentiment further fuelled by tariff announcements. What comes to US tariffs, we estimate that the direct impact at current tariff rates is limited given that our direct sales to the
I am proud of the resilience and hard work demonstrated by our team, and I remain optimistic and confident in our strategic direction, positioning, and the opportunities that lie ahead. We are beginning to see the significant impact of our efforts to control factors within our power, reflected in our improving results, operational efficiency, and close relationship with our customers.
Going forward, we continue to work diligently with pricing, cost and operational efficiencies, alongside numerous other ongoing value-creating actions which contribute to improved profit and cash flow. As part of this, we continue to reduce our indebtedness with net debt to EBITDA having come down from 4.0x to 3.2x in the last year. Operating working capital to sales came down from
Given the recent progress made, as announced today, we now take the next step on our path to build a stronger Stora Enso by further strengthening the strategic focus on our core business of renewable packaging. To reinforce this ambition, we plan to implement a more streamlined organisational structure, carefully designed to increase customer focus, drive operational efficiency and enhance our performance culture.
Following the planned change, our renewable packaging business will consist of four P&L responsible business areas accounting for approximately
Our remaining three business areas, Biomaterials, Wood Products, and Forest, will in addition to their respective business, support renewable packaging operations through wood sourcing and supply of raw material.
This streamlined organisational setup will enable us to enhance business accountability, remove one management layer, and represents a further decentralisation of P&L responsibility closer to customers and operations. This will also enable us to capitalise on synergies, reduce complexity and overlap, and most importantly, make us more customer and business centric.
Thank you for your continued support and dedication. We are confidently navigating through volatile markets and building a stronger, better, resilient, and more profitable Stora Enso.
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-q1-earnings-presentation-2025.open-exchange.net/
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 Interim Report January–March 2025. 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.
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
STORA ENSO OYJ
CONTACT:
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
This information was brought to you by Cision http://news.cision.com
The following files are available for download:
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