Release Date: October 24, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Paperboard production volumes increased significantly, with over 100,000 tonnes more compared to Q3 last year.
- Insurance compensation of EUR23 million was recorded in Q3, partially offsetting losses from the Kemi mill explosion.
- The company renewed its dividend policy, aiming to pay at least half of the financial period's result as dividends.
- Folding boxboard sales have strengthened in each market area, particularly in EMEA.
- Metsa Board Oyj's strategy focuses on growing in fiber-based packaging materials and renewing industrial operations, with investments aimed at improving competitiveness and sustainability.
Negative Points
- Market pulp delivery volumes fell sharply in Q3, primarily due to weak demand in China.
- The operating result for January-September was EUR73 million, significantly lower than the EUR121 million in the same period last year.
- Cash flow has been unsatisfactory, with operating cash flow negative for most of the year.
- Net debt rose to approximately EUR350 million, the highest level in the last five years.
- The company expects Q4 operating results to be weaker than Q3, with potential impacts from seasonal demand slowdowns and rising costs.
Q & A Highlights
Q: Can you clarify the pricing situation for paperboards in Q3 compared to Q2?
A: The prices did not decline; the difference is due to a weaker mix. For Q4, we expect prices to remain stable. - Mika Joukio, CEO
Q: What is the current capacity utilization in paperboards, and how do you plan to manage it in Q4?
A: Husum and Kemi mills are running full due to ramp-up phases, but other mills have taken downtime due to weaker order inflow. We will continue to curtail production and may implement temporary layoffs if the situation persists. - Mika Joukio, CEO
Q: Is there a price war in the virgin fiber consumer boards market in Europe?
A: We do not see it as a price war. Our prices have remained stable, and we expect them to continue to do so in Q4. - Mika Joukio, CEO
Q: What are the main factors affecting the Q4 financial outlook?
A: Paperboard delivery volumes are expected to decrease slightly, with stable prices. Costs will increase due to higher wood and fixed costs, while maintenance costs will be lower. FX impact will be slightly negative. - Henri Sederholm, CFO
Q: Could you provide details on the insurance compensation received in Q3 and expectations for Q4?
A: The compensation was split roughly 50-50 between Metsä Board and Metsä Fibre. We have received EUR23 million out of an estimated EUR40 million in damages. The timing of further compensation is uncertain. - Henri Sederholm, CFO
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
