Stora Enso reports 9.1% sales growth in Q1 FY25

FINLAND – Finnish packaging giant Stora Enso has posted €2.36 billion (US$2.68bn) in sales for the first quarter (Q1) of fiscal year 2025 (FY25), marking a 9.1% increase compared to the same period last year.

In its interim report for January to March 2025, the company attributed the sales growth primarily to higher prices and increased delivery volumes.

Adjusted earnings before interest and taxes (EBIT) rose for the fourth consecutive quarter on a year-on-year basis, reaching €175 million (US$199.44m), up 17.7% from €149 million (US$169.81m) in Q1 FY24.

The adjusted EBIT margin improved to 7.4%, compared to 6.9% in the prior-year period. Stora Enso cited favourable pricing, volume growth, and positive currency exchange and depreciation effects, which collectively offset higher fibre costs.

Operating profit rose 21.7% year-on-year to €171 million (US$194.88m), up from €141 million (US$160.69m) in Q1 FY24.

The company’s pretax profit surged 40.8%, reaching €132 million (US$150.43m), while net profit for the quarter climbed 40% to €107 million (US$121.94m).

Basic earnings per share grew to €0.14, representing a 43.5% increase from €0.10 in Q1 FY24.

Commenting on the performance, Stora Enso president and CEO Hans Sohlström said, “This improvement primarily resulted from higher prices, alongside increased volumes, favourable foreign exchange rates, and the positive impact of cost-saving and value-creation initiatives, which helped mitigate continued high fibre costs.”

Looking ahead, Stora Enso anticipates a negative impact of approximately €100 million (US$113.96m) on its adjusted EBIT for FY25 due to the ramp-up of its new packaging board line in Oulu, Finland. A significant portion of this impact is expected in Q2.

Capital expenditures for FY25 are projected between €730 million (US$831.94m) and €790 million (US$900.32m).

Additionally, maintenance costs in Q2 are forecast to exceed those of Q1 by roughly €20 million (US$22.79m).

In its Packaging Materials division, the company expects the containerboard market to remain stable with continued price increases from Q1 into Q2.

Demand for consumer board is projected to strengthen seasonally, with output from the new consumer packaging board line gradually increasing delivery volumes.

Meanwhile, the Packaging Solutions division forecasts higher demand in Western Europe, driven by seasonal trends in the fruit and vegetable sector.

Last week, Stora Enso also announced a structural reorganization into seven profit-and-loss accountable business areas, underscoring the growing importance of its renewable packaging operations.

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