Q4 2024 Svenska Cellulosa Aktiebolaget SCA Earnings Call Transcript
Key Points
- Svenska Cellulosa AB (SVCBF) achieved an EBITDA of SEK7.1 billion for 2024, with a strong EBITDA margin of 35%, despite higher wood raw material costs.
- Strategic investments in Obbola and Ortviken have led to increased production capacity and higher delivery volumes, contributing to future productivity and cash flow.
- Record high harvesting volumes of over 5.2 million cubic meters were achieved in 2024, supporting a stable supply of wood raw materials.
- The company proposed a dividend increase to SEK3 per share, reflecting a commitment to providing a stable and increasing return to shareholders.
- Svenska Cellulosa AB (SVCBF) has successfully ramped up its wind power capacity, reaching around 10 terawatt hours, which is 20% of Sweden's installed wind power capacity.
- Higher costs for wood raw materials negatively impacted profitability, despite efforts to offset these with increased harvesting and strategic investments.
- The Renewable Energy segment faced challenges due to lower green premiums for tall oil and liquid biofuels, influenced by lower blending mandates and increased imports from China.
- Electricity prices were low during the quarter, negatively affecting the Wind business.
- The Containerboard segment experienced a 17% decline in EBITDA due to planned maintenance stops and higher raw material costs.
- The market for solid wood products remains slow, with only slight improvements seen in the repair and remodeling sector.
Good morning, and welcome to this presentation of SCA's full-year results for 2024. With me here today, I have President and CEO, Ulf Larsson; and CFO, Andreas Ewertz, to go through the results and take your questions. Over to you, Ulf.
Thank you for that, Anders. And also from my side, good morning, and welcome to the presentation of SCA's results for the full year and for the fourth quarter 2024. During 2024, SCA showed that we can deliver good profitability even in a challenging environment. And despite substantially higher costs related to wood raw material, SCA reached SEK7.1 billion on EBITDA level, and by that, an EBITDA margin of 35% for the year. During 2024, we have continued to gradually increase production in the sites where strategic investments have been made.
This has resulted in higher delivery volumes in comparison to last year due
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