Nevertheless, adjusted EBIT decreased by 18% to €126 million (Q2 2024: €153 million). According to the group, the new consumer board line in Oulu site is the main reason for this, as its ramp-up had a negative impact of around €50 million. Cash flow from operations decreased by a marked 55% to €145 million.
Across all business areas, Stora Enso expects continued weak demand, sustained pressure on margins due to overcapacities, and high raw material costs. The ramp-up of the Oulu site is estimated to have an impact of approximately €100 million on the group’s full-year EBIT.
As part of its strategic realignment, the company plans to:
- continue to focus on renewable packaging solutions,
- restructure the organization into seven business areas,
- divest 12.4% of its Swedish forest holdings valued at €900 million, and is assessing a potential separation and public listing of the remaining forest assets.
According to the Stora Enso, its Wood Products division recorded solid sales in the first half of the year despite the tense market situation. Nevertheless, results are under pressure due to increased costs and investments. Adjusted EBIT increased in the first half of the year, and the EBIT margin rose from 1.7% in the second quarter of 2024 to 2.2% in the same period this year, primarily due to price increases which offset the higher raw material prices.
Sales of the Wood Products division grew by 19% to €494 million, mainly due to higher sales prices and volumes for lumber, and the acquisition of Junikkala. The interim report goes on to state that demand for both traditional wood products and building solutions was stronger than in the previous year. The main driver for the price increases was further rising raw material costs.
