Stora Enso Financial Statement Release 2024: Improved results in challenging markets

In the last quarter of 2024 Stora Ensos sales increased by 7% to EUR 2,322 (2,174) million. Adjusted EBIT increased to EUR 121 (51) million and adjusted EBIT margin increased to 5,2% (2,3%). In Year 2024 sales were EUR 9,049 (9,396) million and adjusted EBIT was EUR 598 (342) million.

Stora Enso’s President and CEO Hans Sohlström comments on the fourth quarter 2024 results:

- 2024 marked a year of substantial progress for Stora Enso, demonstrating our commitment to building a foundation for sustained profitable growth. Our actions to improve sourcing and operational efficiency as well as commercial excellence, and the implementation of cost reductions across the Company have borne fruit, enhancing our profitability and competitiveness. Despite facing macroeconomic uncertainties, fluctuations in market demand, and rising wood costs, these actions have progressed well.

In 2024, we increased our adjusted EBIT by 75%, reaching 598 million euro, or a 6.6% margin. This improvement was supported by higher deliveries across all divisions, partially offset by lower sales prices. Sales decreased by 4% to 9,049 million euro, due to structural changes; within that, sales for continuing businesses increased by 1%. We reduced our fixed costs by 110 million euro and offset the continued wood cost escalation with efficiency improvements and reductions in other variable cost categories.

In the fourth quarter of 2024, adjusted EBIT increased by 139% to 121 million euro compared to the same quarter previous year, corresponding to a margin of 5.2%. The improvement was driven by price increases and cost saving actions. Sales increased to 2,322 million euro, a year-on-year growth of 7%.

Our focused actions to reduce operating working capital resulted in an all-time low operating working capital of 544 million euro in the fourth quarter, a reduction of more than 700 million euro in 1.5 years with an operating working capital to sales ratio of 7% down from 14%. This further improved our cash flow from operations to 325 million euro in the quarter.

The fair value of our total forest assets reached 8.9 billion euro, or 11.28 euro per share, highlighting the enduring value and potential of our asset base. Additionally, as announced in the fourth quarter last year, we are preparing to sell approximately 12% of our forest assets in Sweden. This move is aimed at further reducing our net debt, increasing financial flexibility and confirm the financial value of the Company’s forest holdings.

We are also proud to announce that we have surpassed our 2030 target by achieving a 53% reduction in Scope 1 and 2 greenhouse gas emissions, demonstrating our commitment to sustainability and environmental responsibility.

The 1 billion euro investment in building a consumer board packaging line at our Oulu site in Finland is on schedule and expected to commence production ramp-up in the coming months. We estimate the start-up to adversely impact our 2025 adjusted EBIT by approximately 100 million euro, primarily in the first half of the year, followed by a gradual improvement in earnings thereafter.

We need to continue with our actions to make Stora Enso more efficient and stronger. While short-term demand outlook continues to be subdued, we continue our systematic and structured work to reduce our fixed and variable costs as well as improve operative performance during 2025.

In the longer term, Stora Enso is poised to leverage the recent big investments and cost reductions to further strengthen our market position, strive to deliver exceptional service to our customers, and continue our journey of sustainable development towards our long-term financial targets and improved shareholder value creation.

I would like to thank all our employees, customers, suppliers, and shareholders for their commitment and support during 2024. I am exceptionally proud of our team’s resilience, engagement and dedication, which have been crucial in navigating this year's challenges and setting the stage for future successes.