Q1 2025 Stora Enso Oyj Earnings Call Transcript
Key Points
- Sales grew by 9% in the first quarter, reaching EUR 2.4 billion.
- Achieved a robust adjusted EBIT of EUR 175 million, representing an 18% increase year-over-year.
- Successful production start of the new consumer board line at the Oulu Mill.
- Regulatory approval to proceed with the acquisition of Finnish sawmills, Junnikkala, enhancing operational synergies.
- Plans to implement a new leaner and flatter organizational structure to enhance efficiency and performance culture.
- Adjusted EBIT for the full year 2025 is expected to be adversely impacted by approximately EUR 100 million due to the ramp-up of the new packaging board line.
- Higher fiber costs negatively impacted results, with a total negative impact of EUR 131 million in the quarter.
- Cash flow after investing activities was negative at EUR 47 million, driven by the Oulu project.
- Wood costs remain at record high levels, impacting profitability.
- The Packaging Solutions division continues to face challenges due to market overcapacity and oversupply.
Hello, everyone, and welcome to Stora Enso's first-quarter 2025 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 CFO, Niclas Rosenlew. Today's presentation titled Consistent progress in improving performance will primarily address our performance, market environment and our plans to implement a new leaner and flatter organizational structure, reflecting stronger focus on renewable packaging business.
We have the broadest renewable packaging offering in the industry. Our packaging products include a diverse range of renewable wood-based materials and solutions such as cartons, boxes, trays, cups and bags catering to industries like food and beverage, e-commerce, pharmaceutical and cosmetics. These products are daily essentials, as you can see here on the front page. We will now guide you through our performance for the first quarter of 2025 and address any questions you might have towards the end of this session
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