FINLAND – Finnish pulp and paper maker Stora Enso has reported a 35.4% dip in its net profit for the first quarter (Q1) of the fiscal year 2023 (FY23) €185 million (US$203.82m) from €287million (US$319.39m) in the same period of FY23 its net profit for the first quarter (Q1) of fiscal year 2023 (FY23) to drop 35.4% to €185 million (US$203.82m) from €287million (US$319.39m) in the same period of FY23.
During Q1 FY23, the company’s sales reached €2.72 billion (US$3.03bn), down by 3% when compared to €2.79 billion (US$3.10bn) in the corresponding period a year ago.
Stora Enso’s operational earnings before interest and taxes (EBIT) dropped by 53% to €234 million (US$260.41m) in Q1 FY23 and the operational EBIT margin decreased to 8.6%.
The company registered an operating profit of €258 million (US$287.12m), down 34.6% from €394 million (US$438.46m) in the same period a year ago.
Stora Enso president and CEO Annica Bresky said: “During the last two years, we have delivered record-high results and advanced our growth agenda in renewable packaging, sustainable building solutions and biomaterials innovations.
“Simultaneously, we have taken investment decisions to improve the competitiveness of strategic assets and steps to reduce cyclicality by exiting the paper business”.
The company’s profit before tax for Q1 FY23 was €228 million (US$253.73m), down 39.1% from €374 million (US$416.21m) in Q1 FY22.
Bresky added: “The business environment this year is expected to be significantly more challenging for all our divisions. Demand for most of our products is weak or weakening and market uncertainties are persisting.
“During the quarter, the high inflationary pressures persisted, and we have curtailed production to reduce inventories and adapt to the prevailing market conditions. For us, this means reinforced cost control and diligent capital allocation management.”
Recently, the company issued revised guidance for FY23 in response to the worsening market outlook.
Stora Enso expects its operational EBIT for FY23 to be significantly lower than FY22’s figure of €1.89 billion (US$2.10bn).
Introduces Trayforma BarrPeel
Designed for vacuum skin packs, Trayforma BarrPeel is a sustainable barrier-coated paperboard material for pressed trays, ideal for packaging cold cuts, single-portion meats, fish, and cheese.
It consists of 90% renewable wood fibers, keeping plastic usage to a minimum and significantly reducing the packaging’s carbon footprint.
Vacuum-sealed skin packaging extends the shelf life of fresh food, thus limiting environmental impact by preventing food waste.
According to Stora Enso, the board material helps brand owners to achieve their sustainability goals by minimizing plastic to less than 10% of the tray.
The board material’s surface enables the overlaying polymer skin film to be easily peeled. This provides packagers with an affordable solution that meets the growing demand for sustainable packaging materials.
Stora Enso Trayforma & Barriers technical account manager Jaana Keskitalo said: “With Trayforma BarrPeel, we improve environmental performance on two levels: protecting food to provide a longer shelf life and reducing the share of fossil-based materials.
“We’re especially proud that we can achieve this while also providing a great user experience. This easily peelable tray material lets consumers enjoy their product with minimal effort.”
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