January–December 2020 (compared to 1–12/2019)
• Sales were EUR 1,889.5 million (1,931.8).
• Comparable operating result was EUR 221.2 million (184.4) or 11.7% (9.5%) of sales. Operating result was EUR 227.3 million (180.8).
• Comparable earnings per share were EUR 0.46 (0.41), and earnings per share were EUR 0.48 (0.41).
• Comparable return on capital employed was 12.2% (10.4%).
• Net cash flow from operations was EUR 307.7 million (200.5).
October–December 2020 (compared to 10–12/2019)
• Sales were EUR 473.1 million (478.4).
• Comparable operating result was EUR 64.5 million (39.1), or 13.6% (8.2%) of sales. Operating result was EUR 64.5 million (20.0).
• Comparable earnings per share were EUR 0.14 (0.09), and earnings per share were EUR 0.14 (0.05).
• Comparable return on capital employed was 14.3% (8.9%).
• Net cash flow from operations was EUR 81.0 million (89.6).
Metsä Board’s CEO Mika Joukio:
“The fourth quarter of the year went according to our expectations and our comparable operating result was EUR 64.5 million (10–12/2019: 39.1). The lower production costs for the paperboard business and the in-creased delivery volumes of market pulp improved our profitability. Our financial position remained strong: at the end of the period, our interest-bearing net debt was at EUR 236 million and its ratio to comparable EBITDA was clearly below one.
In December, we announced to sell a 30% share of the Husum pulp mill to the Swedish forest owner cooperative Norra Skog. The arrangement made Metsä Board practically a net debt free company, which means that we are in an excellent position to expand our core business – sustainable, high-quality fresh fibre paperboard. Also in December, we made a final investment decision on the first phase of the renewal of the Husum pulp mill.
The coronavirus pandemic’s negative impact on our business remained smaller than expected throughout the year. Solid demand in food and pharmaceutical packaging, as well as in various packaging solutions in the retail sector, increased demand for our fresh fibre paperboards in our main markets. Our paperboard deliveries grew from the previous year and were 1,810,000 tonnes. Our growth continued, particularly in North America, where our sales are supported by competitive products, an efficient supply chain and superior customer service.
Our comparable operating result in 2020 improved by 20% from the previous year and was EUR 221.2 million. Our comparable return on capital employed, 12.2%, reached our long-term target level. Profitability improved due to lower production costs and a positive foreign exchange impact. Early in the year, our result was burdened by the paper industry strike that lasted more than two weeks. The strike concerned Metsä Board’s mills in Finland and all of the pulp mills of our associated company Metsä Fibre. Pulp’s overall impact on our operating result was neutral.
Our production and deliveries has not experienced any disruptions during the pandemic, and the annual maintenance shutdowns of the mills were carried out successfully. The production efficiency of our mills was at a high level in 2020 and we achieved new records in both paperboard and pulp production.
details at: https://www.metsaboard.com/Media/Stock-Exchange-and-Press-Releases/Pages/Release.aspx?EncryptedId=554574B65BC78B71&Title=MetsaBoardscomparableoperatingresultin2020wasEUR221million