Q2 2025 Metsa Board Oyj Earnings Call Transcript
Key Points
- Metsa Board Oyj (FRA:MSRB) is launching a transformation program aimed at improving profitability with a target of achieving an annual EBITDA improvement of EUR200 million by the end of 2027.
- The company has a strong foundation with highly skilled and motivated employees, long-term customer relationships, and a high level of sustainability supported by Metsa Group.
- Production was successfully transferred from the closed Tako mill to Kyro, which is expected to improve annual EBITDA by approximately EUR30 million starting from Q4.
- Metsa Board Oyj (FRA:MSRB) issued a new six-year EUR200 million green bond, extending its debt maturity profile and supporting its 2030 sustainability targets.
- The company is focusing on optimizing inventory management to release EUR150 million in working capital by the end of the year, which is expected to strengthen cash flow.
- Metsa Board Oyj (FRA:MSRB) reported a negative comparable operating result of minus EUR23 million for Q2, with a greater decline than anticipated due to weak pulp market and production curtailments.
- Cash flow remained negative, impacted by capital tied up in product inventory and weak earnings.
- The company faces challenges from weak consumer sentiment, geopolitical instability, and US import tariffs, which have increased uncertainty and negatively affected order inflows.
- The pulp market remains weak, with no clear sign of near-term improvement, impacting profitability.
- Metsa Board Oyj (FRA:MSRB) expects its comparable operating result in Q3 2025 to be weaker than in the last quarter due to continued market-related curtailments and a weak pulp market.
Good afternoon, and welcome to Metsa Board's half-year report webcast and conference call. My name is Katri Sundstrom, and I am responsible for investor relations at Metsa Board.
As you may notice, our format has changed. From now on, we will be holding our result presentations as live webcasts instead of audiocasts. Otherwise, the structure remains the same.
CEO, Esa Kaikkonen; and CFO, Henri Sederholm will present the results, after which we will open the conference call for questions. (Event Instructions)
An important reminder and disclaimer that the presentation includes forward-looking statements.
But now we are ready to begin. Once more, thank you for joining us today, and I will now hand over to Esa.
Thank you, Katri. Good afternoon, everyone. Before moving on to the results, let's take a moment to review the current market landscape we are facing.
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