Stora Enso has confirmed its interim report, for the period January to September 2024. Sales were €6,727m, down from €7,222m in the same period last year. Adjusted EBIT was €478m, up from €292m in same period last year..
Hans Sohlström, President and CEO, comments, “I am pleased to report that our value creation and profit improvement programmes are progressing well across all divisions. These initiatives, designed to optimise our processes and enhance our competitive edge, remain on track. Improvements in profitability, along with more favourable market conditions in some segments during the third quarter, continued to support a positive earnings trend. Our team is diligently managing operations, sales, sourcing, working capital, and refining processes to ensure operational efficiency, cost competitiveness and financial strength. And our profit improvement programme, initiated earlier this year with a goal of €120m in fixed cost savings, is set to deliver its full impact from 2025.
“We have seen a strong increase in our Group financial performance this quarter compared to last year, driven by higher prices and volumes, particularly in Packaging Materials. The adjusted EBIT rose for the fourth consecutive quarter, reaching €175m, up from €21m in 2023, due to price hikes and cost cuts. This improved our margin to 7.8% from 1%. Challenges persist in the Packaging Solutions, which face price lags and market overcapacity. Despite these challenges, our cost-saving measures have effectively reduced both fixed and variable costs.
“On 23 October, we announced that after a thorough review and negotiations, we decided to stop the divestment process and instead retain our Beihai packaging production site and forestry business, recognising that the value in own use of these assets exceeds achievable sale proceeds. This decision supports our strategic aim to strengthen our leadership in the fiber-based packaging market and by optimising the product mix, this site will continue to enhance our position as a leading global supplier, especially in the Asia Pacific region.
“In our continuous pursuit of financial stability, we are preparing for the sale of approximately 12% of our forest assets in Sweden, covering 1.4 million hectares valued at €6.3 bn. This divestment aims to strengthen our balance sheet. In our ongoing commitment to prioritise financial stability through strategic decisions such as the divestment of forest assets in Sweden, we remain equally dedicated to maintaining the highest environmental standards in all operational areas.”
