HELSINKI, Oct. 20, 2021 /PRNewswire/ -- Another
quarter with robust growth and profitability
Q3/2021 (year-on-year)
- Sales increased by 23.9% to EUR 2 577 (2 079) million
due to higher prices and deliveries.
- Operational EBIT increased to EUR
410 (175) million, driven by higher volumes and prices,
especially in Biomaterials, Wood Products and Packaging
Materials.
- Operational EBIT margin increased to 15.9% (8.4%).
- Operating profit (IFRS) increased to EUR
386 (145) million.
- EPS was EUR 0.38 (0.11) and EPS
excl. fair valuations (FV) was EUR
0.37 (0.12).
- Strong cash flow from operations amounted to EUR 485 (399)
million. Cash flow after investing activities was EUR 347 (250) million.
- The net debt to operational EBITDA ratio improved to 1.4 (2.4).
The target is to keep the ratio below 2.0.
- Operational ROCE excluding the Forest division increased to
20.0% (7.8%), and was clearly above the long-term target of more
than 13%.
Q1–Q3/2021 (year-on-year)
- Sales were EUR 7 445 (6 400) million.
- Operational EBIT more than doubled to EUR 1 102 (532)
million.
Strategy implementation update
- Stora Enso is investing EUR 97
million to expand board production at the Skoghall site in
Sweden. This is to drive
profitable growth in attractive packaging end-use segments. With
the completion of the feasibility study, Stora Enso has decided not
to go ahead with the originally planned pulp capacity
expansion.
- Following the successful conversion in Oulu from paper to
kraftliner production for food applications, Stora Enso will start
a pre-feasibility study to convert the second line, currently idle,
at its Oulu site in Finland to a
packaging board line.
- Stora Enso has set an ambitious goal of 100% regenerative
solutions by 2050 and announced new 2030 sustainability
targets.
- Pilot production of Lignode® by Stora Enso, wood-based carbon
for batteries, is being ramped up according to plan, and work
towards finding the right partners is progressing.
- Paper production at the Veitsiluoto and Kvarnsveden sites was
terminated, following the conclusion of the co-determination
negotiations.
- The Sachsen paper mill in Germany was divested to Model Group.
- Stora Enso is decentralising its operating model. This will
strengthen execution of strategy and customer intimacy, empower
divisions, enhance business specific processes and drive a
performance culture. Leaner Group functions focus on strategic
activities and scale synergies.
Outlook
The global economic activity remains at a healthy level with
resilient demand for Stora Enso's products in key segments.
The annual outlook for the full year 2021 remains as previously
guided. Operational EBIT in 2021 is expected to be higher than the
2020 operational EBIT.
Key figures
Key figures
EUR million
|
Q3/21
|
Q3/20
|
Change % Q3/21-Q3/20
|
Q2/21
|
Change % Q3/21-Q2/21
|
Q1-Q3/21
|
Q1-Q3/20
|
Change % Q1-Q3/21−Q1-Q3/20
|
2020
|
Sales
|
2 577
|
2 079
|
23.9%
|
2 592
|
-0.6%
|
7 445
|
6 400
|
16.3%
|
8 553
|
Operational
EBITDA
|
570
|
330
|
73.0%
|
524
|
8.9%
|
1 582
|
997
|
58.7%
|
1 270
|
Operational
EBIT
|
410
|
175
|
134.3%
|
364
|
12.6%
|
1 102
|
532
|
106.9%
|
650
|
Operational EBIT
margin
|
15.9%
|
8.4%
|
|
14.0%
|
|
14.8%
|
8.3%
|
|
7.6%
|
Operating profit
(IFRS)
|
386
|
145
|
165.5%
|
182
|
112.1%
|
729
|
633
|
15.2%
|
922
|
Profit before tax
excl. IAC and FV
|
373
|
144
|
158.2%
|
334
|
11.7%
|
999
|
413
|
142.0%
|
501
|
Profit before tax
(IFRS)
|
349
|
115
|
204.1%
|
152
|
129.8%
|
626
|
513
|
22.0%
|
773
|
Net profit for the
period (IFRS)
|
229
|
86
|
246.4%
|
207
|
44.2%
|
652
|
380
|
71.7%
|
617
|
Net interest-bearing
liabilities
|
2 672
|
3 008
|
-11.2%
|
2 975
|
-10.2%
|
2 672
|
3 008
|
-11.2%
|
2 921
|
Operational ROCE
excl. Forest division, %
|
20.0%
|
7.8%
|
|
18.1%
|
|
16.8%
|
7.8%
|
|
7.0%
|
Earnings per share
(EPS) excl. FV, EUR
|
0.37
|
0.12
|
219.7%
|
0.27
|
37.0%
|
0.87
|
0.36
|
143.7%
|
0.45
|
EPS (basic),
EUR
|
0.38
|
0.11
|
244.1%
|
0.26
|
46.4%
|
0.83
|
0.49
|
68.4%
|
0.79
|
Net debt/last 12
months' operational EBITDA ratio
|
1.4
|
2.4
|
|
1.8
|
|
1.4
|
2.4
|
|
2.3
|
Average number of
employees
|
23 358
|
24 428
|
-4.4%
|
23 509
|
-0.6%
|
23 295
|
24 817
|
-6.1%
|
24 455
|
Stora Enso's President and CEO Annica
Bresky comments on the third quarter 2021
results:
"I am delighted to see us deliver yet another robust quarterly
performance. Sales in our core and growth businesses were up by
32.5% year-on-year, while our operational EBIT of EUR 410 million more than doubled compared to the
same period last year. This is a result of the execution of our
ongoing strategic transformation and the strength of the underlying
market. The strategic actions we are taking by focusing the
business on key growth areas put us in a strong position to
continue to drive sustainable profitability.
It is rewarding to see solid top line growth across our
strategic focus areas. Packaging Materials and Wood Products
divisions delivered all-time high quarterly sales, reinforcing our
strong position in these segments. Packaging Solutions also had a
good quarter in the established business, with new scalable
innovations and services picking up speed. Biomaterials sales grew
to a record high third quarter, however higher prices were partly
offset by the global logistics disturbances.
The Forest division provides the foundation for our strategic
business areas, by supplying raw material for our renewable
products. Our forest assets are yielding well and grew sales
through higher timber volumes and prices. In our Paper division,
the quarter was heavily impacted by the structural closures of our
sites in Kvarnsveden and Veitsiluoto. After the ongoing
restructurings are finalised, the share of Paper sales will move
towards 10% of the Group's total sales. We can see already now a
turnaround for our remaining, more competitive Paper
business.
Stora Enso already has a leading position in the packaging
segment and today we announced an expansion of board production at
our site in Skoghall, Sweden. The
nearly EUR 100 million investment
will allow us to meet demand within the growing segments of liquid
and food packaging. We are also evaluating taking the next step to
convert the second production line in Oulu, Finland into packaging grades. The recent
successful ramp up and positive market reception of our new premium
kraftliner quality, gives us confidence to assess this opportunity
as we see strong long-term demand for our sustainable
packaging.
Our ongoing investments are on track: the construction of our
new CLT line is proceeding and scheduled to start operating during
the third quarter 2022, and our recycling facility collaboration
with Tetra Pak is scheduled to be operational by the beginning of
2023. Our pilot production plant for bio-based battery components
is developing according to plan. The carbon market for batteries
grows by 30% annually, and an estimated 450 000 tonnes of carbon
material per year will be needed already in the coming years. We
are currently evaluating the best alternatives in legal structure
and suitable partners to further develop this lignin-based
innovation.
To speed up our growth strategy and to move even closer to our
customers and their customers, we are decentralising our operating
model. This will strengthen execution of strategy and customer
intimacy, empower divisions, enhance business specific processes
and drive a performance culture. Leaner Group functions focus on
strategic activities and scale synergies. I strongly believe that
clear business ownership will help create the winning,
innovation-driven culture needed in order to create value and
accelerate our growth for the long-term.
Sustainability is the backbone of our business. It drives our
innovation agenda and our collaborations with customers, partners
and suppliers. To strengthen Stora Enso's sustainability ambitions,
we announced today new 2030 targets for our key sustainability
priorities: climate change, biodiversity and circularity.
Furthermore, we have committed to become 100% regenerative by 2050.
This means that we are shifting our focus from just minimising
environmental impact, towards a net-positive contribution to
climate change mitigation, materials circularity, and nature
restoration. This is a very ambitious journey, and a necessary one.
It puts us in the lead of the much-needed societal transformation:
away from fossils and a linear economy. Our new targets will guide
our renewable materials strategy and boost our ability to deliver
the eco-friendly solutions that the consumers of today and tomorrow
demand.
Stora Enso fully supports the European Commission's climate
goals. The EU is currently working on several pieces of regulation
with relevance and impact on the forest industry. The goal of all
initiatives is to enable a "green transformation" and to stay below
1.5C of climate warming. With our regenerative agenda, we will
strengthen our sustainable forestry practices and accelerate the
use of renewable wood fibers for carbon neutral and circular
products. We are part of the solution to enable the transition of
our societies away from fossil dependency.
The renewable future grows in the forest."
Analysts, investors and media are invited to participate in
the webcast and conference call today at 15:00 EEST (14:00
CEST, 13:00 BST, 08:00 EDT). The result will be presented by
the 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/xgicessg.
All participants can follow the presentation over the
webcast.
Analysts and investors who wish to ask questions should join the
conference call (details below).
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 Stora Enso's
website: storaenso.com/investors
Dial-in details for the analyst and investor conference
call
Live event at 15.00 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:
|
2972393
|
Replay Dial-In #:
|
|
UK/International
|
+44 (0)3333 009
785
|
Access
Code:
|
2972393
|
The conference call replay will be available via the dial-in
number until Wednesday 27 October
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–September 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.
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
For further information, please contact:
Carl Norell
Press officer
tel. +46 72 2410349
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-september-2021,c3436322
The following files are available for download:
https://mb.cision.com/Public/13589/3436322/881ca02827d5cac9.pdf
|
STORAENSO RESULTS
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|
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