Strong quarterly performance and executing on our strategic agenda to accelerate long-term growth
Q3/2022 (year-on-year)
- Sales increased by 15% to
EUR 2,963 (2,577) million. -
Operational EBIT increased by 29% to
EUR 527 (410) million. - Operational EBIT margin increased to 17.8% (15.9%).
-
Operating profit (IFRS) increased to
EUR 511 (386) million. -
EPS was
EUR 0.47 (0.38) and EPS excl. fair valuations (FV) wasEUR 0.47 (0.37). -
Cash flow from operations amounted to
EUR 639 (485) million. Cash flow after investing activities wasEUR 489 (347) million. - The net debt to operational EBITDA ratio improved to 0.8 (1.4). The target is to keep the ratio below 2.0.
- Operational ROCE excluding the Forest division increased to 22.2% (20.0%), the target being >13%.
Q1-Q3/2022 (year-on-year)
- Sales were
EUR 8,816 (7,445) million. -
Operational EBIT was
EUR 1,536 (1,102) million.
Key highlights
Stora Enso has entered into an agreement to acquire theDutch De Jong Packaging Group to advance its strategic direction, accelerate revenue growth and build market share in renewable packaging inEurope . The transaction is expected to be closed in early 2023 and is subject to employee consultation and regulatory approval.-
The divestments of the Maxau paper site in
Germany and the Nymölla site inSweden were announced in September for a total enterprise value ofEUR 360 million . Closure of the transactions is expected at the beginning of 2023. -
In October,
Stora Enso decided to invest approximatelyEUR 1 billion to convert the remaining idle paper machine at the Group's Oulu site inFinland into a high-volume consumer board production line. The expected annual sales volume is approximatelyEUR 800 million . -
In July,
Stora Enso and Northvolt, the battery cells and systems supplier, entered into a Joint Development Agreement to create a battery with wood-based components sourced sustainably and locally in the Nordic countries.
Outlook
Global megatrends such as an increased awareness of sustainability, an accelerated focus on combatting climate change, and digitalisation underpin
Pulp is showing early signs of price normalisation from the recent extraordinary high levels as the pulp market in general follows the development of the global economy. The overall pulp demand when including all our grades is expected to be flat.
In Wood Products, there is a continued market decline in traditional sawn goods from the first half year's peak levels.
In
In the Forest division, wood demand in Q4 is estimated to remain on par with the previous quarter. There is strong demand for pulpwood, while sawlogs demand is at a lower level due to a weaker sawn wood market.
In the Paper division there is a solid demand outlook for the fourth quarter, supported by seasonality and a good orderbook. However, the division will be impacted in Q4 by higher energy costs and maintenance work.
The Group impact from higher energy costs in the Packaging Materials and Paper divisions will be partly offset by recognised income in Segment Other due to
Guidance
Key figures
EUR million | Q3/22 | Q3/21 | Change % Q3/22-Q3/21 | Q2/22 | Change % Q3/22-Q2/22 | Q1-Q3/22 | Q1-Q3/21 | Change%Q1-Q3/22-Q1-Q3/21 | 2021 |
Sales | 2,963 | 2,577 | 15.0% | 3,054 | -3.0% | 8,816 | 7,445 | 18.4% | 10,164 |
Operational EBITDA | 689 | 570 | 20.8% | 663 | 3.9% | 2,014 | 1,582 | 27.3% | 2,184 |
Operational EBIT | 527 | 410 | 28.7% | 505 | 4.4% | 1,536 | 1,102 | 39.4% | 1,528 |
Operational EBIT margin | 17.8% | 15.9% |
| 16.5% |
| 17.4% | 14.8% |
| 15.0% |
Operating profit (IFRS) | 511 | 386 | 32.3% | 399 | 27.8% | 1,304 | 729 | 78.8% | 1,568 |
Profit before tax (IFRS) | 448 | 349 | 28.3% | 370 | 20.9% | 1,192 | 626 | 90.5% | 1,419 |
Net profit for the period (IFRS) | 367 | 299 | 22.7% | 299 | 22.8% | 953 | 652 | 46.2% | 1,268 |
Net interest-bearing liabilities | 2,125 | 2,672 | -20.5% | 2,434 | -12.7% | 2,125 | 2,672 | -20.5% | 2,309 |
Operational ROCE excl. Forest division, % | 22.2% | 20.0% |
| 22.8% |
| 22.3% | 16.8% |
| 17.8% |
Earnings per share (EPS) excl. FV, EUR | 0.47 | 0.37 | 24.5% | 0.42 | 9.8% | 1.24 | 0.87 | 42.0% | 1.19 |
EPS (basic), EUR | 0.47 | 0.38 | 23.5% | 0.38 | 23.0% | 1.22 | 0.83 | 48.1% | 1.61 |
Net debt/last 12 months' operational EBITDA ratio | 0.8 | 1.4 |
| 1.0 |
| 0.8 | 1.4 |
| 1.1 |
Average number of employees | 21,804 | 23,358 | -6.7% | 22,327 | -2.3% | 22,049 | 23,295 | -5.3% | 23,071 |
Leading and doing what is right' is not only the core value of
During the past quarter, we continued to stay vigilant in an unprecedented and volatile environment. Inflationary cost pressures intensify, but I am pleased that we were able to mitigate and deliver strong results. We advance our growth agenda and capitalise on new sustainable business opportunities to deliver shareholder value. Our sales increased by 15% to
Looking ahead, we see the first signs of potential macroeconomic slow-down that could eventually also impact our business. I am however confident in our ability to be proactive and to adapt.
Accelerating growth in renewable packaging
The acquisition of
De Jong has an entrepreneurial spirit, a solid track record for growth and is one of the largest corrugated packaging producers in Benelux.
Building on the successful first conversion in our site in Oulu,
Investing in building solutions for a future of low-carbon and efficient construction
We continue to invest in a more sustainable construction value-chain and recently inaugurated one of the world's most modern production sites for cross laminated timber (CLT). Located in the
Commercialising lignin-based innovations
We are step by step commercialising our new lignin-based product portfolio, in end-uses such as glues and binders for furniture, construction and lately components in asphalt. We are scaling up production with partnerships and running customer trials to customise Lignode to specific performance needs. With partners, we also progress with our ambitions to build the world's greenest battery. In July, we signed a joint development agreement with Northvolt. In October, we signed a Letter of Intent with Beyonder, Norwegian energy storage technology company, for optimisation of properties and commercial deliveries of lignin-based anode material for batteries after industrial-scale production has started.
Setting ambitious goals to advance strategic focus
But we do not do this alone. We create ecosystems with like-minded partners to build on the creativity and drive of our employees. By leading and doing what is right, we will future proof our business for tomorrow and beyond.
The renewable future grows in the forest.
Webcast
Analysts, investors, and media are invited to participate in the webcast and conference call at
All participants can follow the presentation over the webcast. Analysts and investors who wish to ask questions should join the conference call (details below).
Media representatives who wish to ask questions after the Interim Report is published, may contact
The link to the webcast will be also available on
Dial-in details for the analyst and investor conference call
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+44 333 3009 273 |
+358 9 817 105 22 | |
+46 8 505 583 68 | |
+1 631 913 1422 (pin code 17726956#) | |
|
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The conference call replay will be available via the weblink: https://ir.financialhearings.com/stora-enso-q3-2022. The webcast will be archived on storaenso.com/en/investors/reports-and-presentations.
This release is a summary of
For further information, please contact:
Press officer
tel. +46 72 241 0349
Investor enquiries:
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Part of the global bioeconomy,
For further information, please contact:
Press officer
tel. +46 72 241 0349
Investor enquiries:
Anna-Lena Åström
SVP Investor Relations
tel. +46 70 210 7691
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