- Stora Enso's (SEOAY, Financial) Q1 2025 sales increased by 9% year-on-year to EUR 2,362 million.
- Adjusted EBIT rose by 17.7% to EUR 175 million, achieving a 7.4% EBIT margin.
- The company plans to restructure its business areas, focusing on renewable packaging.
Stora Enso (SEOAY) has announced its Q1 2025 financial results, reporting a robust increase in sales and profitability. The company's sales rose by 9% year-on-year, reaching EUR 2,362 million, while its adjusted EBIT improved by 17.7% to EUR 175 million, resulting in an EBIT margin of 7.4%. This marks the fourth consecutive quarter of year-on-year growth for the company.
Key developments during this period include the commencement of production at the new consumer packaging board line in Oulu, Finland, and obtaining regulatory approval for the acquisition of Finnish sawmill company Junnikkala Oy, expected to finalize by early May 2025. Furthermore, Stora Enso has announced plans to implement a revamped organizational structure from July 2025, which will see the company expand its business areas from five to seven, with a strong emphasis on renewable packaging solutions.
Financial highlights for the quarter also revealed earnings per share of EUR 0.14, an increase in forest assets value to EUR 9.3 billion, and an improved net debt to adjusted EBITDA ratio of 3.2. Despite declaring a dividend of EUR 0.25 per share for 2024, Stora Enso noted ongoing market challenges due to macroeconomic uncertainties and dampened consumer sentiment.
Looking forward, Stora Enso plans to sell approximately 12% of its total forest assets in Sweden and anticipates that the new Oulu packaging board line will negatively impact 2025 adjusted EBIT by EUR 100 million, primarily in Q2. The company aims to reach EBITDA breakeven by the end of 2025 and achieve full capacity by 2027.
The restructuring initiative, which aims to enhance business accountability and customer focus, will consolidate the renewable packaging business into four main areas: Food Service and Liquid Board, Cartonboard, Containerboard, and Packaging Solutions. This transition aims to capitalize on sustainability trends and innovation to strengthen Stora Enso's market competition.
