Metsä Board’s comparable operating result in 2025 January–March was EUR 23 million
January–March 2025 (compared to 1–3/2024)
- Sales were EUR 480.8 million (483.7).
- The comparable operating result was EUR 22.8 million (31.5), or 4.7% (6.5) of sales. Operating result was EUR -3.8 million (23.0).
- Comparable earnings per share were EUR 0.04 (0.06), and earnings per share were EUR -0.02 (0.04).
- Comparable return on capital employed was 3.9% (5.7).
- Net cash flow from operations was EUR -27.9 million (-7.9).
Events in January–March 2025
- The delivery volumes of Metsä Board’s fresh fibre paperboards increased from the previous quarter. Average paperboard prices remained at roughly the same level as in 2024.
- Demand for long-fibre market pulp was stable in Europe and North America. In China, demand was at a good level at the beginning of the year but weakened during March.
- To improve the company’s profitability and competitiveness, Metsä Board decided to close the Tako board mill and improve the operational efficiency of the Kyro board mill. These measures will lead to a total reduction of 208 jobs.
- In cooperation with Metsä Tissue, the company launched a pre-engineering project to investigate the conversion of the BM2 production line in Husum from white kraftliner to foodservice packaging papers and siliconised greaseproof papers.
- CDP recognised Metsä Board with a triple A score for leadership on climate change, deforestation and water security.
- Metsä Board’s Annual General Meeting held on 20 March 2025 supported all the proposals made by the Board of Directors. The AGM resolved that a dividend of EUR 0.07 per share be paid to shareholders for the 2024 financial year.
- On 31 March 2025, Metsä Board announced that its Board of Directors had appointed Esa Kaikkonen as the company’s new CEO as of 7 April 2025. Mika Joukio will continue with Metsä Board until the beginning of October and support Kaikkonen during the transition period.
US import tariffs
On 2 April 2025, the United States announced its plans to impose import tariffs on nearly all countries. The tariff rate on products produced in the EU, and thus on Metsä Board’s paperboards, was to be 10% from 5 April 2025, and 20% from 9 April 2025. On April 10 2025, the implementation of the latter increase was announced to be postponed by 90 days. Metsä Board is negotiating with its customers in the US about the impact of tariffs on the paperboard prices.
In the US, Metsä Board has an established market position and a customer base that appreciates the high performance of the company’s paperboards and the company’s diverse services. Metsä Board is the largest importer of folding boxboard and coated white kraftliner in the US, and no fully equivalent products are produced in the country.
In 2024, Metsä Board delivered 182,000 tonnes of folding boxboard and 183,000 tonnes of coated white kraftliner to the US, which corresponded to around a quarter of overall paperboard deliveries. The company’s 2024 sales in the US totalled approximately EUR 430 million, or 22% of overall sales.
Metsä Board’s CEO Esa Kaikkonen:
“I started as Metsä Board’s CEO on 7 April. The forest industry and Metsä Group are very familiar to me, as I’ve held various duties at Metsä Group over the last 27 years.
I wish to thank my predecessor Mika Joukio, who served as Metsä Board’s CEO since 2014. Mika’s profound knowledge of the paperboard market and his ability to build long-lasting customer relationships have played a key role in Metsä Board’s development and transition from a paper company to one of the world’s leading paperboard producers.
Uncertainty in global trade policy is at a record high due to the decisions made by the US President, and the operating environment is expected to remain unstable in the near future. In addition, the difficult market situation has weighed on Metsä Board’s profitability for quite a while, and we are far from our long-term targets. However, I recognise several strengths at Metsä Board. Our leading position in premium fresh fibre paperboards, our know-how in the paperboard business, our long-term customer relationships, and our solid financial position offer us a good foundation for business development and shareholder value growth.
In January–March 2025, our sales amounted to EUR 481 million, and our comparable operating result was EUR 23 million (Q1/2024: 484; 32). As expected, paperboard delivery volumes picked up from the previous quarter, and delivery volumes increased despite the improvement, demand is at a low level compared with pre-pandemic times. The geopolitical situation is reflected in consumer behaviour, and consumption is moderate.
Market pulp deliveries increased from the previous quarter, improving our associated company Metsä Fibre’s share of the result. Meanwhile, cash flow from operations was weak, amounting to EUR -28 million (Q1/2024: -8). This was due to weak profitability, as well as the increase in working capital.
We aim to compensate the costs from US import tariffs with equivalent price increases. We enjoy a strong market position in the US in both folding boxboard and coated kraftliners, and no fully equivalent products are produced in the country. Our customers appreciate the high quality of our products, as well as our reliable deliveries, and services that support sales. However, we must prepare for potential sales losses due to price increases. It will be especially difficult to forecast the development of our paperboard sales and the related financial impacts in the next few months.
In the review period, we made a decision on the Tako board mill’s final closure and the improvement of the Kyro board mill’s operational efficiency. These measures will reduce a total of 208 jobs. Obviously, these decisions are difficult, but they are nevertheless necessary to improve the company’s profitability and competitiveness. We will do everything in our power to help those who are made redundant find employment at Metsä Group or elsewhere. These measures are expected to improve annual comparable EBITDA by approximately EUR 30 million, starting mainly from the fourth quarter. The production of Tako products has been moved to other mills.
At the beginning of the year, we again received valuable recognition from CDP, which awarded Metsä Board a triple A score for leadership on climate change, deforestation and water security. We are continuing our consistent sustainability efforts, thus helping our customers achieve their sustainability targets.
I am committed to developing Metsä Board’s business. Despite the very volatile and uncertain business environment, I feel confident about the future. I see various opportunities for Metsä Board and believe that our leading position will help us improve our competitiveness and profitability in the globally growing paperboard market."
