stora enso

H1 results better than last year

Article by Martina Nöstler (adapted for holzkurier.com; translated by Eva Guzely) | 25.07.2022 - 09:50

Stora Enso reports sales worth €5.85 billion in the first six months, which corresponds to an increase of 20.2% compared to the same period of last year (€4.87 billion). Operational EBITDA rose by 31%, from €1.01 billion in 2021 to just under €1.33 billion, as the group informs.

Stora Enso sold its three Russian packaging sites to local management. The divestment of the group’s two sawmills in Russia to local management has been completed as well. Stora Enso expects that the formalities for the Russian legal entities in the wood supply operations are going to be completed in the course of the second half of 2022. After the completion of these divestments, the group will no longer have any operations in Russia.

Furthermore, Stora Enso is in the middle of the sales process to divest four out of five of its paper production sites, namely Anjala/FI, Hylte/SE, Nymölla/SE and Maxau/DE. The group’s aim is to focus on growth in key strategic areas instead (see article Stora Enso plans to sell four paper mills).

Demand for Stora Enso’s products is said to be constant. Demand for consumer board is still strong, while stability is expected when it comes to corrugated packaging in Europe. According to the group, demand for pulp will likely remain strong in Europe as well as in China. At the beginning of third quarter, however, early indicators suggest a normalization of demand for containerboard and traditional lumber products, which will not peak anymore. The outlook for the full year 2022 remains unchanged compared to the updated guidance which was issued in June 2022.

In its full-year guidance issued on 13 June, Stora Enso’s operational EBIT was revised up as a result of sustained strong market conditions. The group expects full-year 2022 operational EBIT to be higher than in 2021 (€1,528 billion).