SCA's Year-end Report Q4 2024

Ulf Larsson

Ulf Larsson, President and CEO, SCA

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January–December 2024 compared with January–December 2023 

  • Net sales increased to SEK 20,232m (18,081). The sales increase was mainly as a result of higher selling prices and higher delivery volumes driven by the continued ramp-up of commissioned investments.
  • EBITDA amounted to SEK 7,143m (6,807). Higher selling prices, positive exchange rate effects and higher delivery volumes had a positive impact on earnings. Higher harvesting volume in own forest reduced the impact of rising costs for forest raw material in SCA’s industries.
  • EBITDA margin was 35.3% (37.6).
  • Operating profit increased to SEK 5,027m (4,857).
  • Operating cash flow amounted to SEK 3,187m (2,985).
  • Earnings per share was SEK 5.18 (5.23).
  • The Board of Directors proposes a dividend of SEK 3.00 (2.75) per share.

October–December 2024 compared with October–December 2023

  • Net sales increased to SEK 5,135m (4,384), mainly attributable to higher selling prices.
  • EBITDA amounted to SEK 1,649m (1,635) and EBITDA margin was 32.1% (37.3). Higher selling prices were offset by higher costs for raw materials.

October–December 2024 compared with July–September 2024

  • Net sales amounted to SEK 5,135m (5,248). The decrease was mainly attributable to lower selling prices.
  • EBITDA declined to SEK 1,649m (2,010) and the EBITDA margin was 32.1% (38.3). The change was primarily attributable to higher costs for planned maintenance stops of SEK 338m (122) and lower selling prices.

COMMENTS ON THE FINANCIAL STATEMENTS

Summary of the year

In a challenging market, SCA reported an EBITDA margin of 35.3% (37.6) for 2024. SCA’s competitive advantage lies in the combination of a well-invested and thereby competitive industrial business and a high rate of self-sufficiency in strategically important areas such as wood raw material, energy and logistics. A steady increase in harvesting from SCA-owned forest according to plan has contributed to the result and offset the effects of rising global raw material costs. This strength enables SCA to deliver strong earnings even in a weaker economy and in an uncertain international situation.

During the year, there was a determined effort to gradually ramp up production in the mills where SCA has made strategic capital expenditures. This led to higher delivery volumes than in the preceding year driven by the new paper machine in Obbola and the new CTMP facility at the Ortviken site. The investments made are expected to gradually contribute to increased productivity and strengthened cash flow generation also in the years ahead.

The carrying amount of SCA’s forest assets was in line with the preceding year and amounted to SEK 107.3bn (107.5). SCA bases its valuation of forest assets on forest transactions in the areas where SCA owns forest. The three-year average market price used in valuation of SCA’s Swedish forest assets was SEK 388/m3fo at December 31, 2024, compared with SEK 395/m3fo in the year-earlier period. The price decrease was offset by higher standing volume from continued net growth in SCA’s forests.

The market for forest transactions in northern Sweden was tentative during the first half of the year, but market activity and price levels increased during the second half of the year. In parallel, timber prices continued to rise.

Link to full release

Source: SCA