Q4 2024 Holmen AB Earnings Call Transcript
Key Points
- Holmen AB (FRA:HL9C) reported a strong full-year result for 2024 with SEK3.7 billion, marking a historically good performance.
- The company proposed an ordinary dividend of SEK9 and an extra dividend of SEK3, reflecting a strong financial position and shareholder returns.
- Holmen AB has successfully distributed SEK6 billion to shareholders over the past two years through dividends and share buybacks.
- The company has maintained a healthy margin in the pulpwood sector, indicating resilience despite rising wood costs.
- Holmen AB's Board and Paper division continues to deliver strong results, with successful integration and promising outcomes from the merger of the two divisions.
- The fourth quarter of 2024 was slower than usual, with market softness and operational stops impacting performance.
- High wood costs, particularly in southern Sweden, are challenging for the Wood Products business, affecting profitability.
- Electricity prices in northern Sweden are extremely low, making it difficult for the Energy division to generate significant profits.
- The renewable energy market faces excess capacity and project delays, impacting growth projections.
- The company faces challenges in the sawlog market due to scarcity and high costs, particularly in the south of Sweden.
Good morning, everybody, and welcome to the year-end report presentation for the Holmen Group. It's me, Henrik Sjolund and Anders Jernhall. We will go through the presentation. And then as usually, we take your questions after the presentation.
So let's start. Well, in the fourth quarter of 2024, we were able to deliver a bit over SEK700 million. It's, as you know, a bit slower in the fourth quarter. It was a bit slower also in the fourth quarter for us this year, a bit slower maybe than normal. And we had two stops and as I said, the market a bit softer.
Still a good result. And if you look at the full year of 2024, SEK3.7 billion, it's in a historic perspective, a really good result. If you look at our industry, we were able to deliver 16%. And if you take it in a historic perspective, we've been able to deliver actually a return on capital employed of 19% over the last 10 years. And to be honest, in 2024, we didn't have any contribution from Wood Products. So if you look at Board and Paper, we were actually a
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