Stora Enso raises its guidance for the full year 2024 adjusted EBIT (Inside information)
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.
- Revised EBIT guidance for 2024 is now 50% or higher than 2023's EUR 342 million.
- Successful implementation of profit improvement actions.
- Increased demand and improved pricing in consumer board and pulp sectors.
- Internal forecasts for 2024 revised to higher levels due to better market conditions.
- Continued challenging market conditions in Wood Products and Packaging Solutions divisions.
- Persistent market uncertainties including high inflation, strikes, and external disruptions.
Insights
Stora Enso's revision of its full year 2024 adjusted EBIT guidance is a significant development for investors. The company now expects to exceed its previous guidance, projecting a
Such a substantial upward revision indicates strong financial health and successful strategic initiatives. Investors should pay attention to the factors driving this optimism: increased demand and pricing for consumer and container boards, as well as higher pulp prices. The improved outlook suggests that profit improvement actions are yielding tangible results.
While this is positive, it's important to remain cautious due to ongoing market uncertainties. High inflation, potential strikes and other disruptions could still impact performance. Investors should weigh these risks against the promising financial projections.
Ultimately, the revised guidance signals that Stora Enso is well-positioned to capitalize on favorable market conditions, making it an attractive prospect in the short to medium term.
Market conditions are playing a pivotal role in Stora Enso's revised EBIT guidance. The company's outlook improvement is largely driven by increased demand for consumer board and favorable pricing developments in the container board and consumer board segments. This aligns with broader market trends indicating a recovery and growing demand for sustainable packaging solutions.
The company is benefiting from a rebound in key markets, suggesting a robust competitive position. However, the continued challenges in the Wood Products and Packaging Solutions divisions highlight the variability across different segments. This mixed performance underscores the importance of diversification and market adaptability.
For retail investors, understanding these market dynamics is crucial. The growth in renewable products and biomaterials is a positive indicator, but it's essential to monitor how external factors like inflation and market disruptions might influence future performance.
Overall, the upward revision in guidance reflects a strong market positioning and strategic execution, bolstering investor confidence in Stora Enso's growth trajectory.
STORA ENSO OYJ INSIDE INFORMATION 15 May 2024 at 11:00 EEST
In the outlook comment in its Q1 2024 report, published on 25 April, Stora Enso stated that it anticipates a gradual recovery in market conditions in 2024, with increased demand for consumer board, higher pulp demand and prices. These market trends are continuing with improved volume and pricing. The Group's profit improvement actions are becoming visible in the result development. Consequently, Stora Enso has revised its internal forecasts for the full year 2024 to a higher level than previously estimated.
The outlook has improved due to increasing orderbooks and volumes for consumer board, as well as improved pricing outlook for the container board and consumer board businesses. Pulp prices continue to increase, and the outlook for the rest of this year is stronger than previously estimated. Challenging market conditions still continue in the Wood Products and Packaging Solutions divisions.
Market uncertainties such as a continued high inflationary environment, strikes, demand and price development, and other external disruptions which may impact the Group's profits, are still expected to persist towards the end of 2024.
Stora Enso Oyj will publish its Half-year Report for January–June 2024 on Wednesday 24 July 2024 at approximately 8:30 EEST (7:30 CEST).
Part of the global bioeconomy, Stora Enso is a 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 20,000 employees and our sales in 2023 were
STORA ENSO OYJ
For further information, please contact:
Carl Norell
SVP Corporate Communications
tel. +46 72 241 0349
Investor enquiries:
Anna-Lena Åström
SVP Investor Relations
tel. +46 70 210 7691
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SOURCE Stora Enso Oyj
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