Stora Enso has appointed Tobias Bäärnman, Chief Strategy and Innovation Officer, as a member of the Group Leadership Team. He joined Stora Enso in 2017, first as SVP Controlling, Strategy and IT for Consumer Board division. Since December 2019, he has worked as Chief Strategy and Innovation Officer. Before joining Stora Enso, he worked as Finance Director at Iggesund Paperboard and has earlier held various positions at Statoil and Procter and Gamble. He has a master’s degree in finance. Stora Enso has also appointed Teemu Salmi, CIO and Head of IT & Digitalisation, as a member of the Group Leadership Team. He joined Stora Enso in 2017. Previously, he worked at Ericsson in various executive positions, most recently as SVP and Head of business unit IT & Cloud in Middle East & Africa. He has a bachelor’s degree in computer science.
*Sales increased by 36% to EUR 3,420 million (2,523 million in Q3 2021)
*Comparable EBIT grew by 84% to EUR 779 million, 22.8% of sales (424 million, 16.8%)
*Operating cash flow was EUR -201 million (318 million), impacted by cash flow from energy hedges. Other operating cash flows were largely as expected
*The rise in energy futures prices continued, causing short-term cash outflow impact from energy hedges. Respectively, it indicates the strong earnings potential of UPM Energy
*Sales prices increased in all business areas and more than offset the negative impact of higher variable costs
*Cash funds and unused committed credit facilities totalled EUR 5.2 billion at the end of Q3 2022. UPM signed EUR 4.3 billion of credit facilities during Q3
*In August, EcoVadis recognised UPM on Platinum level based on the company’s sustainability performance
*In September, UPM Raflatac completed the acquisition of AMC AG
*In October, the new deep sea pulp terminal in the port of Montevideo in Uruguay was inaugurated
*Sales increased by 19% to EUR 8,489 million (7,141 million in Q1–Q3 2021)
*Comparable EBIT increased by 43% to EUR 1,443 million (1,010 million), and was 17.0% (14.1%) of sales
*Operating cash flow was EUR -1,068 million (844 million), impacted by cash flows from energy hedges in the highly exceptional energy markets
*Net debt increased to EUR 3,133 million (667 million) and the net debt to EBITDA ratio was 1.39 (0.38). A significant part of the increase in net debt is temporary, due to the cash flow impacts of energy hedges and future energy generation
*UPM decided to suspend its deliveries to Russia, the purchasing of wood in Russia and the UPM Chudovo plywood mill operations
*The strike in Finland affected production and delivery volumes in the early part of the year. Estimated full-year earnings impact is not material
*In April, UPM and the Paperworkers’ Union agreed on the first-ever business-specific collective labour agreements
*In June, UPM announced the sale of the Steyrermühl site in Austria to secure competitiveness and adapt newsprint production to long-term market development
Jussi Pesonen, President and CEO, comments on the Q3 results:
“UPM reached all-time high quarterly results in Q3. The strength of our operating model was on full display as we simultaneously delivered record quarterly results in UPM Communication Papers, UPM Specialty Papers, UPM Raflatac, UPM Energy and UPM Biofuels. UPM Fibres and UPM Plywood achieved strong results, too. All in all, Q3 was a great success considering the highly uncertain and volatile business environment.
Good demand continued in most of our businesses, and sales prices more than offset the impact of continued increases in variable costs. Delivery volumes were back to normal after the exceptional H1 and operational efficiency was on a good level. No major downside risks materialised during the quarter.
Our sales grew by 36% to EUR 3,420 million (Q3 2021: 2,523 million), and comparable EBIT grew by 84% to EUR 779 million (424 million). As in the previous quarter, cash flows related to energy hedges affected operating cash flow significantly, resulting in an operating cash flow of EUR -201 million. Due to the nature of our hedging, this cash flow is expected to reverse in the future.
Our financial position remains strong, with cash funds and unused committed credit facilities totalling EUR 5.2 billion at the end of Q3. Net debt to EBITDA ratio was on a healthy level at 1.39. This gives us a solid base to navigate the unpredictable operating environment.
more at: https://www.upm.com/about-us/for-media/releases/2022/10/upm-interim-report-q3-2022-upm-delivers-all-time-high-quarterly-results-with-excellent-performance-in-all-businesses/