Stora Enso Oyj Half-year Report January–June 2023: Accelerating restructuring in challenging markets

Q2/2023 (year-on-year)
• Sales decreased by 22% to EUR 2,374 (3,054) million.
• Operational EBIT decreased by 93% to EUR 37 (505) million.
• Operational EBIT margin decreased to 1.6% (16.5%).
• Operating profit (IFRS) decreased to EUR -253 (399) million.
• EPS was EUR -0.29 (0.38) and EPS excl. fair valuations (FV) was EUR -0.27 (0.42).
• Cash flow from operations amounted to EUR 146 (404) million. Cash flow after investing activities was EUR -70 (247) million.
• The net debt to operational EBITDA ratio (last 12 months) was 1.7 (1.0). The target is to keep the ratio below 2.0.
• Operational ROCE excluding the Forest division (last 12 months) decreased to 10.7% (21.7%), the target being above 13%.

Key highlights
• Stora Enso plans to permanently close down its Sunila pulp production unit in Finland, the De Hoop containerboard site in the Netherlands, one containerboard line at its Ostrołęka site in Poland, and the Näpi sawmill in Estonia.
• Stora Enso has taken the next step in driving a decentralised operating model and increased independency of the divisions by initiating change negotiations regarding the planned decentralisation and leaner Group functions.
• The above-mentioned planned restructuring actions are expected to improve operational EBIT by approximately EUR 110 million annually.
• One of the two paper machines at the Anjala site in Finland will be permanently closed down in Q4/2023.
• A new, high-tech corrugated packaging unit started operations at Stora Enso’s De Lier site in the Netherlands.
• The consumer board investment at the Oulu site in Finland is moving ahead according to schedule. Production is expected to start during 2025.
• Stora Enso launched a new framework for green and sustainability-linked financing to further integrate sustainability into its funding, and issued EUR 1 billion of green bonds. In addition, EUR 550 million bilateral loans were arranged to strengthen liquidity.
• Stora Enso’s ISS Corporate ESG rating improved from B- to B, the highest in the industry.
details at: https://www.storaenso.com/en/newsroom/regulatory-and-investor-releases/2023/7/stora-enso-oyj-half-year-report-january-june-2023-accelerating-restructuring-in-challenging-markets

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