Q1 2025 Metsa Board Oyj Earnings Call Transcript
Key Points
- Paperboard sales improved from the previous quarter, driven by increased delivery volumes.
- Production volumes grew compared to both the previous quarter and the corresponding period last year.
- The company performed exceptionally well in the CDP evaluation, achieving an A score in climate change, forests, and water security.
- Metsa Board Oyj has a strong market position in the US for folding boxboard and quality kraftliners.
- The company expects annual EBITDA to improve by roughly EUR30 million starting mainly from the fourth quarter of this year due to operational efficiency enhancements.
- Operating cash flow was negative due to increased inventory levels and prolonged weak profitability.
- The closure of the Tako mill will result in 208 job cuts.
- US tariffs have a significant impact on Metsa Board Oyj's business, creating uncertainty in financial and operational impacts.
- Overall demand for paperboards remained moderate and far from pre-pandemic levels.
- Energy efficiency weakened, and the TRIF (Total Recordable Incident Frequency) increased, indicating room for improvement in safety and efficiency.
Good afternoon, everyone, and welcome to the presentation of Metsa Board's first-quarter results. My name is Esa Kaikkonen. I'm Metsa Board's new CEO starting from April 7. Together here with me, I have our CFO Henri Sederholm and Head of Investor Relations, Katri Sundström. Prior to elaborating the results, let me briefly introduce myself.
The forest industry and Metsa Group are very familiar to me as I have held the various roles at Metsa Group over the past 27 years. For example, I have been responsible for Metsa Group's legal affairs and strategy, and for several years, almost -- or more than 10 years, I also led Metsa Group's wood products and tissue businesses, Metsa Wood and Metsa Tissue.
Despite the current challenging environment, I'm very optimistic about the future. I see great opportunities for Metsa Board and believe we can enhance our competitiveness and profitability in the evolving paperboard market. At this time, I would also like to thank my predecessor Mika Joukio, who served as Metsa Board's CEO since 2014.
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