Q4 2023 highlights :
*Sales decreased by 22% to EUR 2,531 million (3,231 million in Q4 2022)
*Comparable EBIT decreased by 51% to EUR 323 million, 12.8% of sales (653 million, 20.2%)
*Operating cash flow was EUR 456 million (1,576 million), supported by cash inflow from working capital
2023 highlights:
*Sales decreased by 11% to EUR 10,460 million (11,720 million in 2022)
*Comparable EBIT decreased by 52% to EUR 1,013 million (2,096 million), and was 9.7% (17.9%) of sales
*Operating cash flow was record strong at EUR 2,269 million (508 million), supported by cash inflow from energy hedges
*UPM Paso de los Toros pulp mill in Uruguay started production in Q2 2023
*The OL3 nuclear power plant unit began regular commercial electricity production in Q2 2023
*UPM Leuna biochemicals refinery project is progressing at full speed
*Permanent closures of PM6 at UPM Schongau, Germany, PM4 at UPM Steyrermühl, Austria and UPM Plattling paper mill, Germany
*UPM received platinum in the EcoVadis responsibility assessment with a high industry score
*UPM joined the UN Global Compact Forward Faster Initiative
Massimo Reynaudo, President and CEO, comments on the results:
“UPM delivered solid 2023 results in a very challenging operating environment as the world went through an exceptional economic cycle. During the first half of the year, we experienced an exceptionally sharp downturn, especially in European markets. Unprecedented destocking significantly affected market deliveries and was combined with falling pulp and energy prices. As the year progressed, there were signs of gradual recovery in many product markets, and we were able to deliver improving earnings.
Our Q4 comparable EBIT increased when compared to the previous quarter by 47% to EUR 323 million and comparable EBIT margin was at a good level of 12.8%.
Looking at full year 2023, we succeeded well in margin management and took decisive action to reduce variable and fixed costs and to adjust our capacity to the low demand. Cash flow was at a record level, and our financial position is strong.
more at: https://www.upm.com/about-us/for-media/releases/2024/02/upm-financial-statements-release-2023-upms-earnings-recovery-continued-in-q4-growth-projects-set-to-deliver/