Quarter January-June Full Year
SEKm 2-20 1-20 2-19 2020 2019 2019
Net sales 3 853 4 499 4 361 8 352 8 621 16 959
Operating profit excl. item 542 628 574 1 170 1 217 2 345
affecting comparability
Operating profit 542 628 574 1 170 1 217 11 115
Profit after tax 411 491 451 902 954 8 731
Earnings per share, SEK 2.5 3.0 2.7 5.6 5.7 52.6
Operating margin, %* 14.1 14.0 13.2 14.0 14.1 13.8
Return on capital employed, 5.0 5.7 8.6 5.4 9.2 8.9
%*
Return on equity, % 4.1 4.9 7.7 4.5 8.1 7.8
Cash flow before investments 693 615 884 1 307 1 539 2 727
and change in working capital
Debt/equity ratio, % 7 9 14 7 14 9

*Excluding items affecting comparability 2019.

· Operating profit for January-June was SEK 1 170 million (January-June 2019: 1 217). Price decreases and production curtailments in paper had a negative impact on profit, which was largely offset by higher profit from paperboard and forest. 
· Compared with the first quarter, operating profit decreased by SEK 86 million to SEK 542 million as a result of lower demand for paper caused by COVID-19. Profit for paperboard and wood products increased.
· Profit after tax for January-June amounted to SEK 902 million (954), which corresponds to earnings per share of SEK 5.6 (5.7). 
· The Board of Directors proposes a dividend of SEK 3.5 per share for decision at an Extraordinary General Meeting in September.
· In July, Holmen signed an agreement to acquire 100 per cent of the shares in Martinsons for SEK 1.0 billion. Martinsons is one of Sweden's leading players in sawn and processed wood products, with an annual timber consumption equivalent to Holmen's timber harvest in Northern Sweden. The acquisition is subject to approval by the relevant competition authority, which is expected in the fall.

For further information please contact:
Henrik Sjölund, President and CEO, tel. +46 8 666 21 05
Anders Jernhall, Executive Vice President and CFO, tel. +46 8 666 21 22
Stina Sandell, Senior Vice President Sustainability and Communications, tel. +46 73 986 51 12
 

This information such that Holmen AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Swedish Securities Market Act (2007:528). The information was submitted for publication, through the agency of the contact person set out above, at 12.30 CEST on Thursday, 13 August 2020.

Holmen's business concept is to own and add value to the forest. The forest holdings form the basis of the business - an ecocycle in which the raw material grows and is refined into everything from wood for climate-smart building to renewable packaging, magazines and books. The forest is managed to provide a good annual return and stable value growth while our production operations are run with a focus on profitability and greater value added. In 2019 Holmen's net sales were approx. SEK 17 billion and the group has approx. 3 000 employees. Holmen's shares are listed on Nasdaq Stockholm, Large Cap. For more information, visit holmen.com.

https://news.cision.com/holmen/r/holmen-interim-report-january-june-2020,c3168112

https://mb.cision.com/Main/308/3168112/1290678.pdf

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