Stora Enso’s sales in the fourth quarter increased by 7% to €2,322m (from €2,174m in Q4, 2023). Adjusted EBIT increased to €121m (from €51m in Q4, 2023) and adjusted EBIT margin increased to 5.2% (from 2.3% in Q4, 2023).
Operating result (IFRS) was €-279m (€-326m in Q4, 2023), including items affecting comparability of €-768m related mainly to impairments booked as part of the annual impairment review, and fair valuations and other non-operational items of €368m mostly from increase in the fair value of the standing growing trees (biological assets).
The profit improvement programme, initiated in Q1/2024 with a target of €120m in annual gross fixed cost savings, progressed well, with the full impact realised from the start of 2025. During the year, fixed costs decreased by €110m.
Stora Enso signed an agreement to acquire the Finnish sawmill company Junnikkala Oy to secure a cost-efficient wood supply to the packaging board site in Oulu, Finland, and to support the wood products business with new production assets.
Stora Enso achieved a 53% reduction in Scope 1 and 2 greenhouse gas emissions by year-end, surpassing the 2030 target of a 50% reduction from the 2019 base year.
The consumer board investment at the Oulu site in Finland is progressing on schedule. Production is estimated to start in the coming months with full capacity estimated to be reached during 2027.
Stora Enso intends to sell approximately 12% of its total forest assets of 1.4 million hectares in Sweden, with a fair value of €6.3bn. The sales process is ongoing.
While short term demand outlook continues to be subdued, Stora Enso continues to reduce costs with the aim to improve operational performance during 2025.
The Group’s adjusted EBIT 2025 is anticipated to be adversely impacted by approximately €100m, primarily in H1/2025, due to the ramp-up of the new packaging board line in Oulu, Finland.
“2024 marked a year of substantial progress for Stora Enso, demonstrating our commitment to building a foundation for sustained profitable growth,” said Hans Sohlström, president and CEO. “Our actions to improve sourcing and operational efficiency as well as commercial excellence, and the implementation of cost reductions across the company have borne fruit, enhancing our profitability and competitiveness. Despite facing macroeconomic uncertainties, fluctuations in market demand, and rising wood costs, these actions have progressed well.
“Stora Enso is poised to leverage the recent big investments and cost reductions to further strengthen our market position, strive to deliver exceptional service to our customers, and continue our journey of sustainable development towards our long-term financial targets and improved shareholder value creation,” continued Mr Sohlström.
