Q1 2025 Svenska Cellulosa Aktiebolaget SCA Earnings Call Transcript
Key Points
- Svenska Cellulosa AB (SVCBF) achieved an EBITDA of SEK1.65 billion, with a strong EBITDA margin of 32% for Q1 2025.
- The company demonstrated strong delivery volumes, particularly in the wood segment, due to productivity improvements.
- Strategic investments in Obbola, Ortviken, and Gothenburg are expected to enhance productivity and cash flow in the coming years.
- Prices in the industrial segments were generally higher in Q1 2025 compared to Q1 2024, contributing positively to earnings.
- Svenska Cellulosa AB (SVCBF) maintains a high degree of self-sufficiency in wood raw materials, mitigating the impact of increased raw material costs.
- Global uncertainty, including US tariffs, has increased, affecting demand and the business climate.
- The market for solid wood products remains slow, with uncertainties due to tariff discussions between the US and other countries.
- The renewable energy segment experienced a weaker quarter compared to the previous year, with low electricity prices impacting the wind business negatively.
- Higher costs for wood raw materials negatively impacted EBITDA despite higher prices and volumes.
- Currency fluctuations, particularly the strengthening of the Swedish kroner, have had a negative impact on pricing in local currencies.
Good morning and welcome to this presentation of SCA's 2025 first-quarter results.
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, Anders, and also from my side, good morning and a warm welcome to the presentation of our result for the first quarter 2025. During the first quarter, I say again showed that we can deliver good profitability even in the continued challenging environment.
SCA's high degree of self-sufficiency in wood raw materials mitigated a big part of the higher cost related to wood supply, and we reached SEK1.65 billion on EBITDA level and by that, an EBITDA margin of 32% for the quarter.
During the first quarter, SCA had strong delivery volumes, not least in the wood segment due to
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