OCTOBER 1 – DECEMBER 31, 2020 (compared with July 1 – September 30, 2020)
*Net sales increased 6% to SEK 4,592m (4,338), mainly related to higher delivery volumes.
*EBITDA margin increased to 30.0% (23.8).
*Operating cash flow amounted to SEK 957m (1,118).
JANUARY 1 – DECEMBER 31, 2020 (compared with January 1 – December 31, 2019)
*Net sales declined 6% to SEK 18,410m (19,591). The fall in sales was mainly related to lower selling prices, which was partly offset by higher delivery volumes.
*EBITDA amounted to SEK 3,393m (21,361). The difference was mainly related to two material one-off items, a negative earnings impact from the discontinuation of publication paper operations in 2020 of SEK -1,047m and a positive earnings impact of approximately SEK 16bn from the changed accounting method for valuation of forest assets in 2019.
*EBITDA margin of 24.1% (27.2). The decrease was mainly due to lower selling prices.
*Operating profit amounted to SEK 1,145m (19,665). The difference was mainly due to one-off items from the discontinuation of publication paper operations in 2020 of SEK -1,694m and the changed accounting method for forest assets of approximately SEK 16bn in 2019.
*Operating cash flow amounted to SEK 2,688m (2,916).
2020 was a year marked to a large extent by COVID-19 and its impact on people, society and the market. Health and safety have always been a top priority and SCA has taken a number of measures to protect risk groups, reduce the spread of the virus and to ensure that production, sales and distribution have been maintained with continued focus on pursuing profitable growth.
During the year, SCA decided to discontinue the publication paper operations consisting of three paper machines at the Ortviken industrial site. These will be shut down sequentially during the first quarter of 2021 and when the closure is completed, SCA will only have operations in expanding product categories with healthy future prospects. SCA has also decided to invest SEK 1.45bn in an annual production of 300,000 tonnes of CTMP (chemically pre-treated thermomechanical pulp) at the Ortviken industrial site, where part of the existing infrastructure will be used. The kraftliner expansion project at Obbola is progressing on plan and on budget.
Following a period with a weaker market, falling prices and rising inventory levels during the first half of 2020, the market has gradually improved for all product categories except publication paper, which continued to weaken. SCA’s focus has been to decrease working capital in an uncertain environment. This has resulted in a strong operating cash flow in the third and fourth quarters of 2020 which has contributed to a reduced net debt at the end of the year.
more at: https://www.sca.com/en/about-us/Investors/press-releases/2021-01/interim-report-q4-2020/