Q2 2025 Holmen AB Earnings Call Transcript
Key Points
- Holmen AB (FRA:HL9C) delivered over 800 million in the second quarter, which is considered a decent result given the current market conditions.
- The company achieved a 15% return on capital employed in the second quarter, with a 10-year average of 17%.
- Holmen AB (FRA:HL9C) has a strong financial position, distributing 2.8 billion to shareholders through dividends and buybacks in the first half of the year.
- The forest division reported a 519 million SEK result in Q2, an increase of 30 million SEK compared to Q1 due to higher harvesting.
- The company successfully reduced energy costs by approximately 250 to 300 million SEK in Q2 through efficient management of electricity market volatility.
- The energy division experienced losses in Q2 due to historically low electricity prices in northern Sweden.
- The wood products market is weak, with slow demand in major markets like the US, China, and Europe, and consumer confidence is low.
- Higher wood costs offset the 10% price increase in wood products, resulting in only a 20 million SEK operating profit in Q2.
- The board and paper segment faces demand challenges, with levels still below pre-pandemic figures and consumer confidence lacking.
- Holmen AB (FRA:HL9C) anticipates price pressure on wood products in Q3, with potential further cost increases from higher sawlog costs.
Good morning everybody and welcome to the interim report presentation for the Holman Group. It's me, Henrik, and it's Stefan, and we will take you through the presentation and once we've finalized, we are happy to take any questions you might have.
So Stephan, let's start.
Yes.
2nd quarter We were able to deliver a bit over 800 million, which I think is a decent result given the situation, especially when it comes to consumer products, which we will come into a bit later.
We also If you look at only our industry, which is boarding paper and our wood products, the industry where we always measure return on capital employed, we were able to deliver 15% in the second quarter. And if you look at the last 12 months, we have an average of 17% over the last 10 years, even a little bit more.
Our financial position is strong. We have also distributed 2.8 billion to our shareholders during the first half of the year through dividend and buybacks.
Let's change subject totally and go
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