Q1/2020 (compared with Q1/2019): *Sales decreased by 16.2% to EUR 2 207 (2 635) million, due to significantly lower prices and volumes. *Operational EBIT decreased to EUR 180 (335) million. *Operating profit (IFRS) was EUR 262 (313) million. *Cash flow from operations amounted to EUR 146 (223) million. Cash flow after investing activities was EUR -32 (94) million. *Operational ROCE was 6.8% (14.5%), below the strategic target of over 13%. Stora Enso’s President and CEO Annica Bresky comments on the first quarter 2020 results: “The first quarter of the year has been marked by challenging harvesting conditions, strikes in Finland and the start of the Covid-19 pandemic. Lower prices and volumes during the quarter had a negative impact on sales and operational EBIT, compared to the record levels in the first quarter of last year. Under these conditions, “a new normal” where historical references are no longer valid, I am satisfied with our performance for the quarter. We delivered a result of EUR 180 million, in the upper end of our guidance range. Our continued focus is on building business resilience and putting our efforts in the areas we can impact, that is serving our customers by keeping our operations running and mitigating supply chain challenges, securing liquidity and managing costs, margins and cash flow. Ultimately, we want to ensure our ability for a quick recovery once the tide turns.
Holmen has today signed an agreement to sell forest properties in north-west Jämtland, Sweden, for SEK 100 million. The sale is expected to be completed in January 2018. The Group’s earnings will be positively impacted by just over SEK 70 million in the first quarter of 2018 since the sale price exceeds the carrying amount according to IAS 41.
With holdings of over 1 million hectares of productive forest land, Holmen is one of Sweden’s largest forest owners.
“This forest land is located far from our production facilities and has significant other values than forestry. We intend to reinvest the sales proceeds in forest located closer to our own production facilities,” says Henrik Sjölund, President and CEO of Holmen.
The buyer is Persson Invest, a Group with a turnover of 5.5 billion SEK that already owns 100,000 hectares of forest land in Jämtland County.
“We are pleased to expand our forest resources in the county. It is rare that real estate of this size comes into the market,” says Henrik Mårtensson, Director of Forestry, Persson Invest.
The properties comprise 4 400 hectares of productive forest land, 2 000 hectares of which are actively managed.