Stora Enso Q1 Report 2023

Quarterly financial highlights

• Sales decreased by 3% to EUR 2,721 (2,798) million.
• Operational EBIT decreased by 53% to EUR 234 (503) million.
• Operational EBIT margin decreased to 8.6% (18.0%).
• Operating profit (IFRS) decreased to EUR 258 (394) million.
• EPS was EUR 0.24 (0.37) and EPS excl. fair valuations (FV) was EUR 0.23 (0.35).
• The value of the forest assets increased to EUR 8.3 (8.0) billion, equivalent to EUR 10.49 per share.
• Cash flow from operations amounted to EUR 254 (403) million. Cash flow after investing activities was EUR 1 (224) million.
• Net debt increased due to the acquisition of De Jong Packaging Group and dividend payment by EUR 324 million to EUR 2,917 (2,593) million.

First quarter 2023 results (compared with Q4/2022)

Group sales decreased by 5%, or EUR 143 million, to EUR 2,721 (2,864) million. Sales were negatively impacted by the paper site disposals of Nymölla in Sweden and Maxau in Germany. Higher sales in Packaging Solutions mainly as a consequence of the De Jong Packaging Group acquisition was more than offset by lower pulp prices and deliveries.

Operational EBIT decreased by EUR 121 million to EUR 234 (355) million and the margin to 8.6% (12.4%). The sales prices were EUR 61 million lower mainly due to lower pulp and sawn wood prices. Variable costs were EUR 94 million higher, especially due to energy and pulpwood. Lower volumes reduced operational EBIT by EUR 30 million and negative net foreign exchange rates by EUR 18 million. Fixed costs were EUR 54 million lower, driven by seasonality and timing of annual maintenance shutdowns. Positive impact from the closed and divested units, depreciations, equity accounted investments and other was EUR 27 million.