UPM Half Year Financial Report 2019: Margin management delivered continued earnings growth

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Q2 2019 highlights

  • Sales grew by 1% to EUR 2,605 million (2,589 million in Q2 2018)
  • Comparable EBIT increased by 3% to EUR 345 million (334 million)
  • Cost environment started to moderate, fixed costs decreased mainly due to lower maintenance activity 
  • Operating cash flow increased to EUR 436 million (328 million)
  • Net debt decreased to EUR 366 million (401 million)

H1 2019 highlights

  • Sales grew by 4% to EUR 5,298 million (5,102 million in H1 2018)
  • Comparable EBIT increased by 4% to EUR 719 million (689 million)
  • Sales prices were higher, outweighing the impact of increased variable costs
  • Operating cash flow increased to EUR 756 million (542 million)
  • UPM decided to close Paper Machine 10 at UPM Plattling, Germany

Jussi Pesonen, President and CEO, comments on Q2 2019 results:

“The second quarter of the year marked the 25th consecutive quarter of increased earnings for UPM. This is a remarkable achievement, all the more so as economic growth remains modest, particularly in Europe. UPM has the tools to drive results in changing market conditions. Our operating model has enabled us to maintain good margins, which has had a favourable impact on our earnings. During the quarter, the cost environment started to moderate, too. Our sales grew by 1% and comparable EBIT increased by 3% to EUR 345 million. Operating cash flow was strong, at EUR 436 million. Our balance sheet is truly industry leading. In the second quarter, we paid a dividend of EUR 693 million, and net debt at the end of the quarter was EUR 366 million.

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Source: UPM

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