FINLAND – Renewable packaging products company Stora Enso has reported a decrease in net sales to €4.46 billion (US$4.84bn) in the first half (H1) of the financial year 2024 (FY24), a 12.4% decline from €5.09 billion (US$5.52bn) in H1 FY23.
Despite the fall in sales, the company’s earnings per share (EPS) improved to €0.16, recovering from a loss per share of €0.05 in the first half of FY23.
The company’s adjusted earnings before interest and taxes (EBIT) for the first half also rose to €317 million (US$344.07m) from €271 million (US$294.14m) in the corresponding period of the previous year.
The operating result for the period was reported at €247 million (US$268.09m).
In the second quarter (Q2) of 2024, Stora Enso’s sales decreased by 3% to €2.30 billion (US$2.50bn) compared to €2.37 billion (US$2.57bn) in the same quarter of the previous year.
However, the company’s continuing operations grew by 1%.
Its EPS for the quarter was €0.06, a significant improvement from a loss per share of €0.29 in Q2 FY23.
The adjusted EBIT for the second quarter increased substantially to €161 million (US$174.75m) from €37 million (US$40.16m) in Q2 FY23, and the adjusted EBIT margin rose to 7.0% from 1.6%.
Net debt increased by €466 million (US$505.79m) to €3.497 billion (US$3.80bn), primarily due to the board investment at its Oulu, Finland, site.
On 11 July, Stora Enso secured a €435 million (US$472.14m) long-term loan from the European Investment Bank to fund its €1 billion (US$1.09bn) investment in the Oulu mill.
The loan repayment extends until 2036, enhancing the group’s debt maturity profile. The loan is currently undrawn.
Stora Enso president and CEO Hans Sohlström said, “I am encouraged by our Q2 performance, which met our expectations and reinforced our recently upgraded 2024 guidance.
“Additionally, this has strengthened our quarterly leverage ratio despite record-high growth investments. This positive development is a testament to our team’s dedication and sets a strong foundation for future success.”
On 15 May, Stora Enso raised its full-year 2024 adjusted EBIT guidance, attributing this to the successful implementation of profit improvement actions and more favourable market conditions.
The company now expects the full-year 2024 adjusted EBIT to be significantly higher than the €342 million (US$371.20m) reported for the entire year of 2023.
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