FINANCIAL STATEMENT RELEASE
Record high cash flow despite a challenging quarter
Dividend proposal
Q4/2019 (year-on-year)
· Sales decreased by 9.3% to EUR 2 411 (2 657) million.
· Operational EBIT decreased to
· Operational EBIT margin was 4.6% (10.2%).
· Operating profit (IFRS) was
· EPS increased to
· Record cash flow from operations amounted to EUR 721 (323) million. Cash flow after investing activities was
· The net debt to operational EBITDA ratio was 2.1 (1.1)
· Operational ROCE was 4.2% (12.4%).
Year 2019 (year-on-year)
· Sales were EUR 10 055 (10 486) million.
· Operational EBIT was
· Record cash flow from operations amounted to EUR 1 980 (1 365) million. Cash flow after investing activities was
Outlook for 2020
Subdued and mixed trading conditions caused by geopolitical uncertainties are expected to continue to impact
Guidance for Q1/2020
Q1/2020 operational EBIT is expected to be in the range of
Various labour unions in
Key figures
EUR million Q4/19 Q4/18 Change Q3/19 Change 2019 2018 Change %
% % 2018-2019
Q4/19-Q Q4/19-Q
4/18 3/19
Sales 2 411 2 657 -9.3% 2 402 0.4% 10 055 10 486 -4.1%
Operational 259 405 -36.0% 376 -31.0% 1 542 1 878 -17.9%
EBITDA
Operational 112 271 -58.8% 231 -51.7% 953 1 325 -28.1%
EBIT
Operational 4.6% 10.2% 9.6% 9.5% 12.6%
EBIT margin
Operating 680 356 91.4% 170 300.0% 1 305 1 390 -6.1%
profit
(IFRS)
Profit 678 267 153.4% 152 n/m 1 329 1 190 11.7%
before tax
excl.
IAC
Profit 646 315 105.2% 115 n/m 1 137 1 210 -6.1%
before tax
(IFRS)
Net profit 519 299 73.9% 59 n/m 856 988 -13.4%
for the
period
(IFRS)
Net 3 209 2 092 53.4% 3 745 -14.3% 3 209 2 092 53.4%
interest
-bearing
liabilities
Operational 4.2% 12.4% 8.7% 9.8% 15.5%
ROCE
Earnings 0.69 0.33 113.2% 0.13 n/m 1.34 1.29 3.9%
per
share (EPS)
excl. IAC,
EUR
EPS 0.66 0.39 71.2% 0.09 n/m 1.12 1.28 -13.1%
(basic),
EUR
Net 2.1 1.10 2.2 2.1 1.1
debt/last
12
months'
operational
EBITDA
ratio
Average 25 403 26 151 -2.9% 26 414 -3.8% 26 096 26 067 0.1%
number of
employees
"Year 2019 was concluded by a challenging quarter characterised by demanding market conditions, especially significantly lower pulp prices. We have focused on what we can impact: our costs, cash flow and managing value over volume. We are satisfied that we were early out with our profit protection programme. It is proceeding ahead of plan and the total implemented cost saving amounted to
Our forest fair valuations have increased significantly since the publication of our third quarter results. The impact came mainly from the forest fair valuation increases in our forests in
The lower prices during the quarter had a negative impact on sales and operational EBIT. However, the impact on operational EBIT was partly offset by lower costs achieved through the profit protection programme. I am pleased that we had a record cash flow from operations, due to good working capital management, and extra dividend and capital repayment from
The Board of Directors proposes to the Annual General Meeting a dividend of
Our transformation projects are progressing well, and the kraftliner production at the
We continue to launch new products that enable our customers to leverage digital solutions to further advance their businesses. In this area, I am proud that we have entered into a global partnership with
As sustainability is at the core of our business, we take further steps to promote wooden buildings. We have launched a new building concept that makes it easier for architects, engineers and developers to design office buildings from wood. We are engaged in a number of new wooden building projects, this quarter in
As the development towards a circular bioeconomy is accelerating in society, we are creating an organisation that further strengthens our ability to drive innovation and sustainability with a common agenda. Therefore, we created a new structure for our packaging divisions at year end. As of 2020 our new Forest division, which will better enhance value creation from our forest assets, will be reported separately to increase transparency.
When it comes to the business climate in the Nordics, I would like to raise a word of caution. For the forestry industry, like for any other industry, we need predictability. Therefore, it is problematic when society is impacted by strikes, which has been the case around the new year. It is utterly important for our countries in this region of the world, to secure the competitive position of exporting industries and ensure that we are well equipped to compete globally.
I can now look back on my first two months in the role as CEO, and I am proud and excited to work with our talented colleagues across the company. We are here to deliver growth and profits, and push the boundaries of sustainability forward together with existing and new customers, partners and investors.
The future grows in the forest!"
Events today
1) Webcast and press conference in
The webcast and press conference for media will take place at 12.00 EET (11.00 CET, 10.00
2) Webcast and conference call for analysts and investors at 15.00 EET
The webcast and conference call for analysts and investors will take place at 15.00 EET (14.00 CET, 13.00
Those analysts and investors who wish to ask questions should join the conference call (details below). All participants can follow the presentation over the webcast.
Dial-in details for the analyst and investor conference call
Live event at 15.00 EET
Confirmation Code: 8646169
The links to the webcasts will be also available on the
This release is a summary of
For further information, please contact:
EVP, Communications
tel. +46 72 221 9228
Investor enquiries:
SVP, Investor Relations
tel. +358 40 763 8767
Part of the bioeconomy,
For further information, please contact:
EVP, Communications
tel. +46 72 221 9228
Investor enquiries:
SVP, Investor Relations
tel. +358 40 763 8767
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