Quarterly sales increased by 7% to €2.56 billion. EBIT grew by 26% and totaled €387 million in the second quarter. Operating cash flow was -€879 million (Q2 2021: €308 million) and was impacted by cash flows from energy hedges. As for other operating cash flows, developments were largely in line with expectations, as the company states.
An upward trend of sales prices was observed in all business areas and this trend more than offset the negative impact of variable costs. UPM decided to suspend its deliveries to Russia, the purchase of wood from Russia as well as operations at the UPM Chudovo plywood mill.
The strike in Finland had a negative effect on production and delivery volumes especially in the pulp, paper and biofuels businesses. Nonetheless, the company does not expect the repercussions of these events on full-year earnings to be significant. In April, UPM and the Paperworkers’ Union agreed on the first-ever business-specific collective labor agreements and the strike ended at UPM mills in Finland.
