HELSINKI, Finland, April 23, 2021 /PRNewswire/ --
Back on track
Improving performance and market conditions
Q1/2021 (year-on-year)
- Sales increased by 3.1% to EUR 2 276 (2 207) million,
due to higher deliveries and prices.
- Operational EBIT increased to EUR
328 (180) million, due to lower costs.
- Operational EBIT margin increased to 14.4% (8.1%).
- Operating profit (IFRS) decreased to EUR
161 (262) million.
- EPS was EUR 0.18 (0.19) and EPS
excl. fair valuations (FV) was EUR
0.22 (0.11).
- Cash flow from operations amounted to EUR 185 (146)
million. Cash flow after investing activities was EUR -9 (-32) million.
- The net debt to operational EBITDA ratio was 2.3 (2.3).
- Operational ROCE excluding Forest division increased to 12.0%
(7.8%)
Strategy implementation update
- Stora Enso is planning to permanently close down pulp and paper
production at Kvarnsveden and Veitsiluoto mills, as announced on 20
April.
- TreeToTextile, a joint venture where Stora Enso holds a 25%
share, invests EUR 35 million in a
demonstration plant for sustainable textile fiber.
- Dissolving pulp production at Enocell Mill will be discontinued
during 2021, and the mill will be producing other pulp grades.
- The conversion project at Oulu Mill was completed and
production of krafliner is in a ramp-up phase.
- The US-based Virdia operations were shut down in Q1/2021.
- A feasibility study is ongoing regarding a possible expansion
of the pulp and board production at Skoghall Mill in Sweden.
Preventive Covid-19 actions
Protecting employees and contractors health and safety during
the pandemic has been Stora Enso's key priority. By being proactive
and having extensive measures in place, the Group has also been
able to continue operations and serve customers with minimal
disruptions.
Outlook
The global economy is recovering from the impacts of the
pandemic and the demand for Stora Enso's products, except for
graphic paper, is healthy. Operational EBIT in 2021 is expected to
be higher than the 2020 operational EBIT as guided earlier.
Stora Enso will conclude its EUR 400
million profit protection programme by the end of Q2/2021,
two quarters ahead of the plan. The accumulated continuous and
total savings from the beginning of the programme until Q1/2021
amount to EUR 360 million and
EUR 460 million, respectively.
Continuous savings of EUR 50 million
were achieved in Q1/2021. Remaining targeted savings are expected
to be reached by the end of Q2/2021.
The Oulu Mill conversion is estimated to have approximately EUR
10–15 million negative impact on the Packaging Materials Q2/2021
operational EBIT. For 2021, the total negative impact on
operational EBIT is forecasted to be approximately EUR 40–50
million. The previous estimate was EUR 45–55 million. The mill is
planned to reach designed capacity by the end of Q2/2021 and the
commercialisation of product portfolio by the end of 2021. The
forecast to reach operational EBITDA break-even is now in Q3/2021,
thanks to successful ramp-up and good market conditions. Previously
it was estimated to be in Q1/2022.
Key figures
EUR
million
|
Q1/21
|
Q1/20
|
Change %
Q1/21-Q1/20
|
Q4/20
|
Change %
Q1/21-Q4/20
|
2020
|
Sales
|
2 276
|
2 207
|
3.1%
|
2 154
|
5.7%
|
8 553
|
Operational
EBITDA
|
488
|
335
|
45.8%
|
274
|
78.3%
|
1 270
|
Operational
EBIT
|
328
|
180
|
82.4%
|
118
|
178.7%
|
650
|
Operational EBIT
margin
|
14.4%
|
8.1%
|
|
5.5%
|
|
7.6%
|
Operating profit
(IFRS)
|
161
|
262
|
-38.5%
|
289
|
-44.3%
|
922
|
Profit before tax
excl. IAC and FV
|
292
|
126
|
131.3%
|
88
|
232.5%
|
501
|
Profit before tax
(IFRS)
|
125
|
209
|
-39.8%
|
260
|
-51.7%
|
773
|
Net profit for the
period (IFRS)
|
145
|
149
|
-2.5%
|
237
|
-38.8%
|
617
|
Net interest-bearing
liabilities
|
3 236
|
3 399
|
-4.8%
|
2 921
|
10.8%
|
2 921
|
Operational ROCE
excl. Forest division, %
|
12.0%
|
7.8%
|
|
4.7%
|
|
7.0%
|
Earnings per share
(EPS) excl. FV, EUR
|
0.22
|
0.11
|
106.5%
|
0.09
|
145.1%
|
0.45
|
EPS (basic),
EUR
|
0.18
|
0.19
|
-5.7%
|
0.30
|
-40.1%
|
0.79
|
Net debt/last 12
months' operational EBITDA ratio
|
2.3
|
2.3
|
|
2.3
|
|
2.3
|
Average number of
employees
|
23 068
|
25 037
|
-7.9%
|
23 406
|
-1.4%
|
24 455
|
Stora Enso's President and CEO Annica
Bresky comments on the first quarter 2021 results:
"Global trade has rebounded faster than expected this year and
the economic recovery in China and
USA are naturally important
factors. The quick response from governments with fiscal stimuli
has also helped to improve global economic performance and evade
deep recessions. Furthermore, the fact that vaccines have been
developed much faster than we've ever seen has given a boost of
hope. Global supply chains have largely proven resilient. With all
this, it is encouraging that we are starting to see signs of light
at the end of the tunnel.
For the year's first quarter I am pleased to deliver yet another
solid result, and we are getting back on track with many of our
financial targets. Our operational EBIT was up considerably year on
year, excluding Paper it nearly doubled to reach over EUR 360 million. We also increased our sales by
14% year on year excluding Paper, to close to EUR 2 280 million. For the full year, the demand
outlook continues to be healthy for all businesses except for
paper. The operational EBIT in 2021 is expected to be higher than
in 2020. We are ahead of plan with our EUR
400 million profit protection programme and it will be
concluded already by the end of the second quarter 2021.
There is a positive market sentiment for all our key business
areas, except for our Paper division, which continues to suffer
from an accelerated structural decline. The rebound of our growth
businesses is a proof point of our strategic direction and
ambitions. It is especially rewarding to see our ability to adapt,
to take advantage of our opportunities and innovate despite the
unique market conditions.
Our packaging divisions are both performing well. In Packaging
Materials, we see strong demand for consumer and container board.
In Packaging Solutions, higher European volumes in combination with
a recovering China business
increased our sales. Our Wood Products business continues to thrive
both for traditional sawn products and building solutions, where we
are expanding outside our European home market.
Our Forest division has experienced advantageous harvesting
conditions this winter, ensuring efficient wood supply to our
Nordic and pan-European production units. This in turn ensures pulp
availability to support the uptick in demand across our business.
Recovering pulp prices, combined with strong production and
deliveries, improved the profitability of our Biomaterials
division.
The paper market continues to suffer from demand decline and the
resulting overcapacity, which unfortunately has caused us to
initiate a plan to permanently close down two of our paper mills:
Kvarnsveden in Sweden and
Veitsiluoto in Finland. Closing
operations that impact our staff is always a last resort, and one
based on thorough evaluations. However, in order to remain
competitive in a rapidly declining paper market, the closing of
unprofitable assets is needed. The closure plan, which is subject
to codetermination negotiations, would have our highest
priority.
Our transformation investment in Oulu, from paper to kraftliner,
is progressing well. Since the January launch, the ramp up is
proceeding ahead of plan. We have customer deliveries and there is
strong market demand. I'm also very pleased that we will be able to
reach EBITDA breakeven already in the third quarter this year. When
fully ramped up, premium kraftliner grades from Oulu will
strengthen our position in a growing packaging market. This
conversion is a prime example of where we are heading as a company.
Our focus is increasingly on high-margin markets where we already
have a strong foothold. One such important market is packaging, in
addition to wooden building solutions and new biomaterials
innovations. These three areas are core for our future growth with
our renewable materials.
Another aspect of our updated strategy has been to identify the
product segments with the best opportunities for leading market
positions, growth and profitability. Consequently, we have decided
to exit the market for dissolving pulp for viscose production
globally. Our current global market share is very small, and we do
not see that we will be able to grow that position. The price
differentiation between dissolving pulp and market pulp is small
and does not motivate the increase in complexity for our pulp
product portfolio and our production costs. We will continue
innovating for a better and more sustainable technology for
biobased textiles. TreeToTextile is such a venture where we,
together with other leading companies, have invested in what we
believe will become a ground-breaking production technology for
sustainable textiles.
Moving forward, our focus remains on keeping our employees safe
from the ongoing pandemic and executing on our updated strategy in
order to reach the financial targets as disclosed last year.
Moreover, we want to show leadership in innovation and be a
constructive partner to governments around the world and the EU
Commission in the pursuit of the Green Deal's vision. Nearly five
years have passed since the Paris Agreement was adopted. As a
significant forest owner and leader in renewable materials, we are
fully committed in helping to combat climate change. We help our
customers make their businesses circular by replacing fossil-based
materials with renewable biomaterials. At the foundation is the
forest. We practice sustainable forestry because we want prosperous
forests today and for the next generation.
The renewable future grows in the forest."
Webcast and conference call for analysts, investors and media
today at 14.00 EEST
The webcast and conference call for analysts, investors and
media will take place at 14.00-15.00 EEST (13.00 CEST, 12.00 UK
time, 07.00 EDT). It will be hosted by President and CEO
Annica Bresky, CFO Seppo Parvi, and SVP, Head of Investor Relations
Ulla Paajanen, and may be accessed at
https://edge.media-server.com/mmc/p/cujazw3z
.
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.
Media representatives who wish to ask questions after the
Interim Report is published, may contact Carl Norell, press officer at Stora Enso at +46
72 2410349.
The link to the webcast will be also available on the Stora Enso
website: storaenso.com/investors
Dial-in details for the conference call
Live event at
14.00 EEST
|
|
UK
|
+44 (0) 2071 928
338
|
Finland
|
+358 (0) 923 113
291
|
Sweden
|
+46 (0) 856 618
467
|
USA
|
+1 6467 413
167
|
Confirmation
Code:
|
1618499
|
Replay Dial-In
#:
|
|
UK/International
|
+44 (0)3333 009
785
|
Access
Code:
|
1618499
|
The conference call replay will be available until Friday
30 April 2021. The webcast will be
archived on
storaenso.com/en/investors/reports-and-presentations.
This release is a summary of Stora Enso's Interim Report
January–March 2021. The complete report is attached to this release
as a pdf file. It is also available on the company website at
storaenso.com/investors.
For further information, please contact:
Ulrika LiljaEVP, Communications and Marketingtel. +46
72 221 9228
Investor enquiries:
Ulla Paajanen
SVP, Investor Relations
tel. +358 40 763 8767
Part of the bioeconomy, Stora Enso is a leading global provider
of renewable solutions in packaging, biomaterials, wooden
constructions and paper. We believe that everything that is made
from fossil-based materials today can be made from a tree tomorrow.
Stora Enso has some 23 000 employees, and sales in over 50
countries. Our sales in 2020 were EUR 8.6
billion. Stora Enso shares are listed on Nasdaq Helsinki Oy
(STEAV, STERV) and Nasdaq Stockholm AB (STE A, STE R)
storaenso.com/investors
STORA ENSO OYJ
CONTACT:
For further information, please contact:
Ulrika Lilja
EVP, Communications and Marketing
tel. +46 72 221 9228
Investor enquiries:
Ulla Paajanen
SVP, Investor Relations
tel. +358 40 763 8767
This information was brought to you by Cision
http://news.cision.com
https://news.cision.com/stora-enso-oyj/r/stora-enso-oyj-interim-report-january-march-2021,c3332000
The following files are available for download:
https://mb.cision.com/Public/13589/3332000/9c682b0a931a7bb9.pdf
|
STORAENSO RESULTS
Q121 ENG
|