January–March 2023 (1–3/2022)
*Sales were EUR 1.634 million (1.594).
*Operating result was EUR 276 million (341). Comparable operating result was EUR 276 million (244).
*Result before taxes was EUR 271 million (330). Comparable result before taxes was EUR 272 million (232).
*Comparable return on capital employed was 15.3% (15.8).
*Net cash flow from operations was EUR 38 million (135).
President and CEO Ilkka Hämälä:
“As anticipated, Metsä Group’s result in the first quarter of 2023 was weaker than that of the previous quarter, but it can still be considered excellent. The quarterly results of Metsä Wood and Metsä Tissue were record high. Metsä Board’s paperboard business performed as expected. The faster than expected market slowdown was reflected in Metsä Fibre and Metsä Board’s pulp business, leading to Metsä Board’s result being weaker than anticipated. Wood trade was active in the early part of the year, and it was supported by Metsä Forest’s bonus campaigns for the cooperative’s owner-members.
Although the Group achieved a high level in its result, Europe’s weak economic outlook and high inflation have a notable impact in all our business areas. In the mechanical forest industry, demand reflected the decrease in new construction industry projects. The increasing consumer prices affect the retail activity and further the demand for tissue paper products and packaging materials. Production curtailments in the industry converting pulp into end products, in both Europe and Asia, led to an oversupply of pulp in the early part of the year. Despite the modest mood in the market, the outlook for long-term strong demand in our product segments remains the same, and our competitiveness is good in our main market areas.
Forestry and the forest industry must continue to develop, regenerate and respond to social trends. In February, we published our regenerative forestry targets and strategy. Avoiding damage to nature is no longer an adequate goal for our operations in commercial forests. Instead, we must plan and implement forestry measures so that we see verifiable improvements in the state of habitats. To achieve this goal, we need data about the forest ecosystems and the ability to carry out practical reforms in forest management measures so that we can achieve the desired impact on the environment. As most of Finland’s forest area will continue to be under the scope of forestry, regardless of expanding protection requirements, the development of forestry operations is extremely important for preventing biodiversity loss.”
more at: https://www.metsagroup.com/news-and-publications/news/2023/metsa-groups-comparable-operating-result-in-januarymarch-2023-was-eur-276-million/