Stora Enso's 2024 Financial Results: Resilience Amid Challenges

Stora Enso Reports Financial Results for 2024

STORA ENSO OYJ has announced the financial results for the year 2024, showcasing significant improvements despite challenging market conditions. Sales rose by an impressive 7%, reaching EUR 2.322 billion in the fourth quarter alone. This was driven by strategic initiatives aimed at optimizing operational efficiency while navigating an unpredictable economic landscape.

Key Financial Highlights of Q4 2024

In the fourth quarter, Stora Enso reported the following key financial metrics:

• Adjusted EBIT surged to EUR 121 million, marking a 139% increase from the previous year.
• The adjusted EBIT margin improved to 5.2%, signaling effective cost management and pricing strategies.
• Sales for the quarter demonstrated a year-on-year growth of 7%, up from EUR 2.174 billion.
• However, the operating result under IFRS was negative at EUR -279 million, impacted by impairments and adjustments.

Annual Performance Overview for 2024

For the entire year 2024, Stora Enso's total sales amounted to EUR 9.049 billion, a decrease of 3.7% from 2023. Despite this dip, adjusted EBIT reached EUR 598 million, a significant improvement from 342 million in 2023. The resilient performance in adjusted EBIT highlights the company's ability to streamline operations and manage costs effectively.

Operational Efficiency and Cost Management

The profit improvement program initiated in Q1 2024 yielded positive results, with total fixed costs decreasing by EUR 110 million over the year. Stora Enso aims to achieve further cost reductions and efficiencies, with a target of EUR 120 million in annual gross fixed cost savings well underway.

Sustainability Initiatives and Environmental Goals

In alignment with global sustainability trends, Stora Enso achieved a remarkable 53% reduction in Scope 1 and 2 greenhouse gas emissions by the end of 2024. This advancement surpasses the company's original target of 50% reduction by 2030, demonstrating its commitment to environmentally responsible practices.

Outlook for 2025 and Beyond

Looking ahead, Stora Enso anticipates a year of continued volatility in demand, influenced by macroeconomic factors and geopolitical uncertainties. However, the company remains steadfast in its operational improvements and expects to manage high wood prices while driving efficiencies in its production processes.

The capital expenditure forecast for the full year 2025 stands at EUR 730–790 million, primarily focused on furthering growth and enhancing operational capabilities.

Market Conditions and Competitive Landscape

The packaging materials sector faced challenges due to weak demand stemming from an ongoing economic recovery. Stora Enso predicts a gradual increase in consumer board volumes in Q1 2025, alongside stabilization in recycled containerboard markets, despite persistent cost pressures.

Commentary from Leadership

Stora Enso's President and CEO, Hans Sohlström, reflected on the fourth-quarter results, stating: "We have made substantial progress, enhancing our profitability amidst fluctuating market demand. The focus on operational efficiency and cost reduction has positioned us favorably for future growth. Our strong commitment to sustainability rests at the core of our strategy, clearly evident by our emission reductions."

Frequently Asked Questions

What were Stora Enso's sales figures for 2024?

Stora Enso's total sales for 2024 were EUR 9.049 billion, representing a 3.7% decrease compared to 2023.

How did the adjusted EBIT change in Q4 2024?

The adjusted EBIT for Q4 2024 increased to EUR 121 million, a significant 139% rise year-on-year.

What sustainability goals has Stora Enso achieved?

Stora Enso achieved a 53% reduction in Scope 1 and 2 greenhouse gas emissions, exceeding their 2030 sustainability target.

What is the outlook for Stora Enso in 2025?

The company expects volatile demand in 2025, impacted by macroeconomic conditions, while pursuing ongoing operational improvements.

What is the planned capital expenditure for 2025?

The forecast for capital expenditure in 2025 is between EUR 730 and 790 million, focusing on enhancing operational capabilities.

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