Q1 2019 highlights
- Sales grew by 7% to EUR 2,693 million (2,512 million in Q1 2018).
- Comparable EBIT increased by 5% to EUR 374 million (355 million).
- Sales prices were higher, outweighing the impact of increased variable costs.
- Operating cash flow increased to EUR 320 million (214 million).
- Net debt decreased to EUR -5 million (41 million).
- UPM announced a plan to close paper machine 10 at UPM Plattling, Germany.
Jussi Pesonen, President and CEO, comments on Q1 results:
"The first quarter of the year lived up to our expectations, and we are thus able to report the 24th consecutive quarter of increased earnings. In five of our six business areas, prices increased more than offsetting the higher costs and keeping overall margins healthy.
Our sales grew by 7% and comparable EBIT increased by 5% to EUR 374 million. Operating cash flow was strong, and our balance sheet remained debt-free even after all leases (EUR 495 million) were recognised on the balance sheet in accordance with the new IFRS16 accounting standard.
UPM Biorefining reported another excellent quarter. As expected, pulp prices were somewhat lower than the historically high prices seen in the latter half of the previous year. Pulp, Biofuels and Timber all enjoyed good customer demand and consequently deliveries developed favourably in an operationally successful quarter.