Metsä Board Corporation Stock exchange release Half-year financial report 1 August 2024 at 12:00 noon EEST
January–June 2024 (compared to 1–6/2023)
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Sales were EUR 993.6 million (1,040.2).
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The comparable operating result was EUR 30.7 million (116.0), or 3.1% of sales (11.2). Operating result was EUR 22.3 million (117.9).
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Comparable earnings per share were EUR 0.03 (0.24), and earnings per share were EUR 0.01 (0.25).
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Comparable return on capital employed was 2.9% (9.3).
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Net cash flow from operations was EUR -16.5 million (142.0).
April–June 2024 (compared to 4–6/2023)
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Sales were EUR 509.8 million (498.2).
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The comparable operating result was EUR -0.8 million (27.3), or -0.2% (5.5) of sales. Operating result was EUR -0.7 million (29.5).
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Comparable earnings per share were EUR -0.03 (0.05), and earnings per share were EUR -0.03 (0.06).
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Comparable return on capital employed was 0.3% (4.6).
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Net cash flow from operations was EUR -8.6 million (15.6).
Metsä Board’s CEO Mika Joukio:
“In 2024, the demand for fresh fibre paperboards has clearly improved from last year’s record low level. The demand for paperboards has been supported by restocking in the value chain. The strengthening of overall consumer product demand has been somewhat slower than expected, as consumers' purchasing power continues to be eroded by higher living costs and persistently high interest rates.
Metsä Board’s paperboard deliveries increased markedly in January–March, and the increase continued in the second quarter. In January–June, delivery volumes totalled 742,000 tonnes (H1/2023: 734,000, H2/2023: 639,000). Despite this increase, delivery volumes remained clearly below capacity levels.
The first half of the year was overshadowed by several setbacks unrelated to Metsä Board. In March–April, political strikes in Finland stopped operations at all our Finnish mills, and port closures broadly prevented our customer deliveries. The gas explosion at Metsä Fibre’s Kemi bioproduct mill in late March stopped pulp production at the integrated mill for three months. It also affected Metsä Board’s kraftliner production. However, we were able to continue our kraftliner production under special arrangements, thus securing our customer deliveries. The strikes and gas explosion had a total negative impact of roughly EUR 65 million on Metsä Board’s operating result, including the impact through Metsä Fibre’s share of the result. A significant part of this focused on the second quarter’s comparable operating result, which decreased to EUR -0.8 million.
In January–June, our sales amounted to EUR 994 million, and our comparable operating result to EUR 30.7 million (H1/2023: 1,040; 116). Profitability was weakened especially by the lower price level of folding boxboard. On the other hand, operating result was supported by lower production costs and the pulp business, which has benefited especially from the positive demand and price situation in Europe. At the end of the period, the ratio of interest-bearing net liabilities to comparable EBITDA was 2.2, which is clearly higher than in previous years. The increase is mainly due to the weak profit development of the last few months.
In line with our strategy, we aim to grow in fibre-based packaging materials and renew our industrial operations. In March, we announced our planned new investment programmes for the Simpele and Kyro paperboard mills and the Husum integrated mill. In April, we made the first investment decision in our Simpele programme – the renewal of the mill’s folding boxboard machine. The investment will improve the quality of folding boxboard, increase production efficiency and enable the replacement of fossil fuels in paperboard production. The value of the investment is EUR 60 million, and we expect the investment to be completed in the second half of 2025.
Last year, we completed two significant investments in Kemi and Husum, which will further strengthen our leading position in folding boxboard and white kraftliners. We will continue to ramp up additional capacity and focus on its full-scale use in our main market areas in Europe and North America.”
Source: Metsä Board