Decisive actions to improve performance, accelerate growth and deliver value
Q4 2024 highlights
- Sales increased by 4% to EUR 2,632 million (2,531 million in Q4 2023)
- Comparable EBIT increased by 29% to EUR 418 million, 15.9% of sales (323 million, 12.8%)
- Operating cash flow was EUR 570 million (456 million)
- UPM Biochemicals initiated the commissioning and start-up of the biorefinery, integrated commercial production to start in H2 2025
- UPM Fibres established a streamlined operating model in Finland to protect profitability of the Finnish platform
- UPM Raflatac simplified its organisation and decided to consolidate production from the Kaltenkirchen site to other units
- UPM Communication Papers closed the fine paper machine 3 at Nordland Papier, Germany
- UPM was listed as the only forest and paper industry company in the Dow Jones Global and European Sustainability Indices (DJSI) for the years 2024–2025
2024 highlights
- Sales decreased by 1% to EUR 10,339 million (10,460 million in 2023)
- Comparable EBIT increased by 21% to EUR 1,224 million (1,013 million), and was 11.8% (9.7%) of sales
- Operating cash flow was EUR 1,352 million (2,269 million)
- Net debt increased to EUR 2,869 million (2,432 million) and the net debt to EBITDA ratio was 1.66 (1.55)
- Cash funds and unused committed credit facilities totalled EUR 3.2 billion at the end of Q4 2024
- The Board proposes a dividend of EUR 1.50 (1.50) per share for 2024, and commences UPM's first share buy-back program of approximately 1.1% of total number of shares
- UPM Paso de los Toros pulp mill reached full production
- UPM Raflatac acquired Grafityp in Belgium to accelerate growth in graphics solutions
- Shutdown of the Hürth paper mill, Germany and the sale of the Steyrermühl site, Austria
- CDP recognised UPM with double ‘A’ score for transparency on climate change and forests
- EcoVadis awarded UPM a platinum score for sustainability performance
Massimo Reynaudo, President and CEO, comments on the results:
“Our performance in 2024 improved from the previous year, supported by a good contribution from the new pulp mill in Uruguay and modestly improved volumes in the advanced materials businesses. However, the recovery in our product markets slowed down in the second half of the year. We implemented decisive measures to improve performance and were able to reduce fixed costs by EUR 103 million during the year. We will drive further fixed cost saving and margin improvement actions into 2025.
In Q4, our sales grew by 4% to EUR 2,632 million. The comparable EBIT was EUR 418 million, an increase of 29% when compared to Q4 2023. Excluding the fair value increase of our Finnish forest assets, totalling EUR 105 million, our business performance was on a similar level as in Q4 2023 or Q3 2024. Operating cash flow was strong at EUR 570 million, and our financial position is solid, with net debt to EBITDA ratio of 1.66 at the end of the year.
In Q4, UPM Fibres continued to increase pulp deliveries, but pulp sales prices were at a low level. The railway from UPM Paso de los Toros to the port of Montevideo was in full use by the end of the year and, thus, the new platform is now in complete operation. In UPM Raflatac, UPM Specialty Papers and UPM Plywood, the slow improvement in delivery volumes continued. In UPM Communication Papers, markets for graphic papers normalized and deliveries decreased. In UPM Energy, electricity prices increased from the previous quarters. The markets for advanced biofuels continued to be challenging.
We enter 2025 with a broad portfolio of attractive businesses and valuable assets. To enhance the value of the company in the current uncertain operating environment, we are acting on three fronts: accelerating growth in targeted areas, improving overall performance and considering opportunities in our business portfolio.
In renewable fibres, 2025 will be the first year of full production at the Paso de los Toros pulp mill in Uruguay. This will add approximately 300 000 tonnes of pulp production compared with 2024 and unlock further potential in our highly competitive Uruguayan platform. We expect a reduction in production costs in Uruguay in 2025 and plan for debottlenecking opportunities at the mills to increase production further in the medium term.
Source: UPM
