Q3/2021 (year-on-year)
•Sales increased by 23.9% to EUR 2 577 (2 079) million due to higher prices and deliveries.
•Operational EBIT increased to EUR 410 (175) million, driven by higher volumes and prices, especially in Biomaterials, Wood Products and Packaging Materials.
•Operational EBIT margin increased to 15.9% (8.4%).
•Operating profit (IFRS) increased to EUR 386 (145) million.
•EPS was EUR 0.38 (0.11) and EPS excl. fair valuations (FV) was EUR 0.37 (0.12).
•Strong cash flow from operations amounted to EUR 485 (399) million. Cash flow after investing activities was EUR 347 (250) million.
•The net debt to operational EBITDA ratio improved to 1.4 (2.4). The target is to keep the ratio below 2.0.
•Operational ROCE excluding the Forest division increased to 20.0% (7.8%), and was clearly above the long-term target of more than 13%.
Q1–Q3/2021 (year-on-year)
•Sales were EUR 7 445 (6 400) million.
•Operational EBIT more than doubled to EUR 1 102 (532) million.
Stora Enso’s President and CEO Annica Bresky comments on the third quarter 2021 results:
“I am delighted to see us deliver yet another robust quarterly performance. Sales in our core and growth businesses were up by 32.5% year-on-year, while our operational EBIT of EUR 410 million more than doubled compared to the same period last year. This is a result of the execution of our ongoing strategic transformation and the strength of the underlying market. The strategic actions we are taking by focusing the business on key growth areas put us in a strong position to continue to drive sustainable profitability.
It is rewarding to see solid top line growth across our strategic focus areas. Packaging Materials and Wood Products divisions delivered all-time high quarterly sales, reinforcing our strong position in these segments. Packaging Solutions also had a good quarter in the established business, with new scalable innovations and services picking up speed. Biomaterials sales grew to a record high third quarter, however higher prices were partly offset by the global logistics disturbances.
The Forest division provides the foundation for our strategic business areas, by supplying raw material for our renewable products. Our forest assets are yielding well and grew sales through higher timber volumes and prices. In our Paper division, the quarter was heavily impacted by the structural closures of our sites in Kvarnsveden and Veitsiluoto. After the ongoing restructurings are finalised, the share of Paper sales will move towards 10% of the Group’s total sales. We can see already now a turnaround for our remaining, more competitive Paper business.
Stora Enso already has a leading position in the packaging segment and today we announced an expansion of board production at our site in Skoghall, Sweden. The nearly EUR 100 million investment will allow us to meet demand within the growing segments of liquid and food packaging. We are also evaluating taking the next step to convert the second production line in Oulu, Finland into packaging grades. The recent successful ramp up and positive market reception of our new premium kraftliner quality, gives us confidence to assess this opportunity as we see strong long-term demand for our sustainable packaging.
Our ongoing investments are on track: the construction of our new CLT line is proceeding and scheduled to start operating during the third quarter 2022, and our recycling facility collaboration with Tetra Pak is scheduled to be operational by the beginning of 2023. Our pilot production plant for bio-based battery components is developing according to plan. The carbon market for batteries grows by 30% annually, and an estimated 450 000 tonnes of carbon material per year will be needed already in the coming years. We are currently evaluating the best alternatives in legal structure and suitable partners to further develop this lignin-based innovation.”
further detail at: https://www.storaenso.com/en/newsroom/regulatory-and-investor-releases/2021/10/stora-enso-oyj-interim-report-january-september-2021?prid=aacd798201fdfa4f