Q4 2024 Stora Enso Oyj Earnings Call Transcript
Key Points
- Stora Enso Oyj (SEOAY) achieved a robust 75% year-on-year growth in adjusted EBIT for 2024, driven by improved sourcing, operational efficiency, and commercial excellence.
- The company reduced its fixed costs by EUR110 million, which helped offset rising wood costs.
- Operating working capital reached an all-time low, decreasing by over EUR700 million, reducing the operating working capital to sales ratio from over 14% to 7%.
- The Board proposed a dividend increase to EUR0.25 per share, up from EUR0.20 last year, reflecting a commitment to shareholder value.
- Stora Enso Oyj (SEOAY) achieved a 53% reduction in Scope 1 and 2 emissions, surpassing its target of a 50% reduction by 2030, demonstrating strong progress in sustainability efforts.
- Full-year sales declined by 4% to EUR9 billion, primarily due to capacity closures and divestments in 2023.
- The Packaging Solutions division faced margin pressure due to market overcapacity, resulting in a negative adjusted EBIT of EUR6 million.
- Wood Products division's adjusted EBIT remained negative at EUR12 million, despite improvements in volumes and prices.
- The company is still far from its long-term financial targets, indicating ongoing challenges in achieving desired profitability levels.
- Market uncertainties and fluctuations in demand and pricing persisted throughout 2024, impacting overall business performance.
Hello, everyone, and welcome to Stora Enso's fourth-quarter 2024 results presentation. Thank you for joining us today. I'm Hans Sohlstrom, the President and CEO of Stora Enso, and I'm here with our new CFO, Niclas Rosenlew. Today's presentation is titled improved results in challenging markets. We will today guide you through our performance for 2024, and we will address any questions you might have towards the end.
Before we start the formal presentation, let's take a moment to look at this image of the lobby in our new headquarters in Helsinki where we moved last autumn. This remarkable mass timber building owned by the Finnish insurer, Varma, is the largest of its kind in Finland, and it's a new low-carbon marvel, capturing attention across the architectural world.
The structure is composed of over 2,000 bespoke load-bearing wooden elements produced by Stora Enso. Choosing wood over concrete for the structure resulted in a significant 35% reduction in greenhouse gases. Besides
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