Q3/2023 (year-on-year)
** Sales decreased by 28% to
** Operational EBIT decreased to
** Operational EBIT margin decreased to 1.0% (17.8%).
** Operating profit (IFRS) was
** EPS was
** Cash flow from operations amounted to
** The net debt to operational EBITDA ratio (last 12 months) was 2.4 (0.8). The target is to keep the ratio below 2.0.
** Operational ROCE excluding the Forest division (last 12 months) decreased to 4.7% (22.1%), the target being above 13%.
Q1-Q3/2023 (year-on-year)
** Sales were
** Operational EBIT was
** Operating result (IFRS) was
** Earnings per share (EPS) were
Key highlights
**
**
** The consumer board investment at the Oulu site in
Guidance
Outlook
The current macroeconomic and market conditions pose significant challenges for
The Packaging Solutions division faces fluctuating and weak market conditions, with challenged margins due to over-capacity. The Forest division experiences a tight wood market, especially for pulpwood in
The Group will now further pursue profit turnaround and cash flow improvements to improve competitiveness, reduce costs, and support focused capital allocation into strategic growth markets.
Key figures
EUR million | Q3/23 | Q3/22 | Change % Q3/23-Q3/22 | Q1-Q3/23 | Q1-Q3/22 | Change % Q1-Q3/23-Q1-Q3/22 | 2022 |
Sales | 2,127 | 2,963 | -28.2 % | 7,222 | 8,816 | -18.1 % | 11,680 |
Operational EBITDA | 180 | 689 | -73.9 % | 777 | 2,014 | -61.4 % | 2,529 |
Operational EBIT | 21 | 527 | -96.0 % | 292 | 1,536 | -81.0 % | 1,891 |
Operational EBIT margin | 1.0 % | 17.8 % |
| 4.0 % | 17.4 % |
| 16.2 % |
Operating result (IFRS) | -1 | 511 | -100.2 % | 4 | 1,304 | -99.7 % | 2,009 |
Result before tax (IFRS) | -41 | 448 | -109.2 % | -117 | 1,192 | -109.8 % | 1,858 |
Net result for the period (IFRS) | -34 | 367 | -109.3 % | -106 | 953 | -111.1 % | 1,536 |
Forest assets1 | 8,256 | 8,135 | 1.5 % | 8,256 | 8,135 | 1.5 % | 8,338 |
Operational return on capital employed (ROCE), LTM2 | 4.5% | 14.6% |
| 4.5% | 14.6% |
| 13.7% |
Operational ROCE excl. Forest division, LTM2 | 4.7% | 22.1% |
| 4.7% | 22.1% |
| 20.4% |
Earnings per share (EPS) excl. FV, EUR | -0.05 | 0.47 | -110.0 % | -0.09 | 1.24 | -107.3 % | 1.55 |
EPS (basic), EUR | -0.04 | 0.47 | -109.0 % | -0.09 | 1.22 | -107.3 % | 1.97 |
Net debt to LTM2 operational EBITDA ratio | 2.4 | 0.8 |
| 2.4 | 0.8 |
| 0.7 |
Average number of employees (FTE) | 21,132 | 21,804 | -3.1 % | 21,097 | 22,049 | -4.3 % | 21,790 |
1 Total forest assets value, including leased land and
2 LTM=Last 12 months
In my role as the newly appointed CEO of
I have been a member of the Stora Enso Board of Directors for over two years, gaining valuable insight into the Company's business, operations, and strategy.
I am passionate about the bioeconomy, and the immense potential that wood-based products offer to create value for our customers, shareholders, and society. To demonstrate my personal commitment, and confidence, I invested
However, we are now facing some challenges due to a demanding market situation. After two good years in 2021 and 2022, our financial performance and result have quickly decreased to a historically low level. In the third quarter, year-on-year sales were down by 28% and our operational EBIT by 96%. This is largely driven by a difficult macroeconomic environment which we now need to navigate, mitigate, and adapt to.
In line with the previous quarter's prediction,
Our strategic initiatives are progressing according to plan. We are investing about
During the quarter, most of our announced restructuring actions to strengthen long-term competitiveness were implemented. We now focus on our profit and cash generation; we act decisively and swiftly. Commercial and operational excellence, competitiveness and shareholder value are our key priorities. Here, asset portfolio optimisation, non-core business divestment and complexity reduction will be essential success factors. We need to leverage our scale, synergies, and best practices across the Group; and within this process, continue to pursue value creation with customers, suppliers, and other stakeholders.
We have the right foundation and the right capabilities to overcome these challenges and achieve our long-term goals. This gives me confidence as we look into the future.
Webcast for analysts, investors, and media
Analysts, investors, and media are invited to participate in the webcast with a teleconference today at
During the webcast presentation, analysts and investors will also have the possibility to ask questions. To participate in the teleconference, please choose the "Teleconference" option on the homepage of the webcast.
Recording of the webcast will be available shortly after the event at the same address and at storaenso.com/en/investors/interim-report
Media representatives who wish to ask questions after the publication of the report may contact
This release is a summary of
Media enquiries:
tel. +46 72 241 0349
Investor enquiries:
Anna-Lena Åström
SVP Investor Relations
tel. +46 70 210 7691
Part of the global bioeconomy,
Media enquiries:
tel. +46 72 241 0349
Investor enquiries:
Anna-Lena Åström
SVP Investor Relations
tel. +46 70 210 7691
https://news.cision.com/stora-enso-oyj/r/stora-enso-oyj-interim-report-january-september-2023--focusing-on-actions-for-a-profitability-turnar,c3859390
https://mb.cision.com/Main/13589/3859390/2380287.pdf
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