SCA Interim Report Q3 2017

JANUARY 1 – SEPTEMBER 30, 2017 (compared with the year-earlier period, continuing operations)
•Net sales increased 9% to SEK 12,422m (11,434)
•Adjusted EBITDA improved 10% to SEK 2,683m (2,443)
•The adjusted EBITDA margin was 21.6% (21.4)
•Adjusted operating profit was SEK 1,838m (1,616)
•Operating profit totaled SEK 1,725m (1,739)
•Net profit for the period totaled SEK 1,278m (1,358)
•Earnings per share amounted to SEK 1.82 (1.93)
•Operating cash flow was SEK 1,431m (1,347)

A STRONG THIRD QUARTER
The third quarter of 2017 was also SCA’s first full quarter, since the split, as an independently listed company. The market trend was favorable in all of SCA’s segments and earnings improved compared with the preceding quarter as well as the same quarter last year.

Second-quarter earnings were impacted by non-recurring effects such as planned maintenance stops, while underlying earnings were stable and rising. This trend has continued into the third quarter.

Market conditions are good in all of SCA’s segments, with favorable demand and continued price increases. Production remained stable.

Demand for wood products is high, with stable demand and balanced markets in Europe, China and the US. Due to these strong market conditions, prices were increased during the year and price increases continued in the third quarter.

Demand for kraftliner has shown a strong growth trend for several years. The key drivers of this trend are e-commerce and demand for high-quality packaging, which has thereby strengthened demand for virgin fiber-based packaging material (kraftliner). In 2017, three price increases were announced for unbleached kraftliner, totaling EUR 150 per tonne, and these are being successively implemented. The price level of white kraftliner has also increased. Demand for publication paper, continued to show a negative trend.

The timber market remained stable in SCA’s operating area, in terms of both price and supply.

The pulp market has continued to be strong. Deliveries to China increased again after the summer and demand was also favorable in other markets. Several ongoing capacity extensions were delayed and production problems in other mills also restricted supply. In September, the price of softwood kraft pulp was raised in USD and further increases have been announced as of October.

The long-term demand for softwood pulp has increased by 1.5-2% per year, which is the background to SCA’s investment in the Östrand pulp mill. The project will double SCA’s capacity and make Östrand one of the most cost-efficient production facilities in the world for softwood kraft pulp. SCA provides more detailed information about the investment amount and cost position of this project on page 6 of this report. The project is on track in terms of both time and budget.
more detail at:  https://www.sca.com/en/about-sca/currently-in-sca/press-releases/2017/interim-report-q3-2017/

Related Posts

Nature’s Flame wood pellets production company sold to New Zealand-based Talley’s Group

Norske Skog has entered into agreement with Talley’s Group, a New Zealand based dairy, fishing, produce and food company, to sell the Nature’s Flame pellets company for a consideration of approximately NZD 47.8 million (approximately NOK 280 million). The transaction is expected to close during the first quarter of 2022. “Nature’s Flame is an excellent company producing high quality and sustainable energy pellets from wood residues, and thus the sales process generated significant interest. Under our ownership, we have expanded the capacity from producing some 20,000 tonnes when acquired to currently 90,000 tonnes, and we are very pleased that Talley’s has indicated interest to continue the ongoing project to further expand the capacity to 150,000 tonnes."

SCA Interim Report Q4 2020

OCTOBER 1 – DECEMBER 31, 2020 (compared with July 1 – September 30, 2020) *Net sales increased 6% to SEK 4,592m (4,338), mainly related to higher delivery volumes. *EBITDA margin increased to 30.0% (23.8).*Operating cash flow amounted to SEK 957m (1,118). JANUARY 1 – DECEMBER 31, 2020 (compared with January 1 – December 31, 2019) *Net sales declined 6% to SEK 18,410m (19,591). The fall in sales was mainly related to lower selling prices, which was partly offset by higher delivery volumes.*EBITDA margin of 24.1% (27.2). The decrease was mainly due to lower selling prices. *Operating profit amounted to SEK 1,145m (19,665). The difference was mainly due to one-off items from the discontinuation of publication paper operations in 2020 of SEK -1,694m and the changed accounting method for forest assets of approximately SEK 16bn in 2019. *Operating cash flow amounted to SEK 2,688m (2,916).

Stora Enso invests in Forshaga to develop sustainable barrier solutions

Stora Enso is making an investment in dispersion barrier technology at its Forshaga site in Sweden, as a step in its innovation agenda. The investment of approximately EUR 10 million enables the development and production of paperboard with barrier properties that are easier to handle in a recycling process, have a lower carbon footprint and can be compostable in industrial facilities. The new equipment is expected to come into use during the second quarter of 2021. Stora Enso Forshaga manufactures and develops barrier solutions that are required in certain packaging, for instance to protect against liquid, moisture, oxygen or fat. Liquid packaging, beverage cups and certain food packaging are some of the products that have a barrier which serves to protect the packaged product, while also ensuring that the packaging maintains its user-qualities. The investment in new dispersion technology aims to achieve the desired barrier properties in a more sustainable way. Stora Enso Forshaga has an annual capacity of approximately 120 000 tonnes of barrier coating across two machines/coating lines, with around 100 employees. Since the beginning of this year, the Forshaga site has also become a competence center within Stora Enso’s Packaging Materials division, tasked with producing and developing new bio-based barrier technologies and products.
Back To Top
×Close search
Search