Q3 2024 highlights
- Sales decreased by 2% to EUR 2,521 million (2,584 million in Q3 2023)
- Comparable EBIT increased by 32% to EUR 291 million, 11.5% of sales (220 million, 8.5%)
- Operating cash flow was EUR 242 million (641 million)
- Demand recovery for UPM's products slowed down
- UPM Paso de los Toros pulp mill was in full production
- UPM acquired Grafityp in Belgium to accelerate growth in UPM Raflatac
- UPM closed the Hürth newsprint mill and decided on the shutdown of one fine paper machine at the Nordland mill, Germany
- EcoVadis awarded UPM a platinum score based on the company’s sustainability performance
Q1 – Q3 2024 highlights
- Sales decreased by 3% to EUR 7,707 million (7,929 million in Q1–Q3 2023)
- Comparable EBIT increased by 17% to EUR 806 million (689 million), and was 10.5% (8.7%) of sales
- Operating cash flow was EUR 782 million (1,814 million)
- Net debt increased to EUR 2,804 million (2,363 million) and the net debt to EBITDA ratio was 1.59 (1.27)
- Cash funds and unused committed credit facilities totalled EUR 3.7 billion at the end of Q3 2024
- Sale of the Steyrermühl site, Austria in January
- CDP recognised UPM with double ‘A’ score for transparency on climate change and forests
Massimo Reynaudo, President and CEO, comments on the results:
"Our Q3 results improved both year-on-year and quarter-on-quarter, with a significant contribution from the fully ramped-up UPM Paso de los Toros pulp mill. The earnings improvement, albeit good, was lower than earlier expected as the market demand of our products slowed down after the encouraging start of the year. We took measures in several of our businesses to safeguard profitability and we continue to take decisive actions to ensure the competitiveness of our businesses and support our growth ambitions.
Our Q3 sales were EUR 2,521 million and our comparable EBIT increased by 32% to EUR 291 million. Our net debt was EUR 2,804 million, 1.59 times EBITDA. Cash funds and unused committed credit facilities totalled at EUR 3.7 billion at the end of the quarter, following the successful issuance of our fourth Green Bond, for EUR 600 million, in August.
At our Capital Markets Day in September, we provided an update on the next phase of our strategy. Under the title "From transformation to growth" we presented a business portfolio which is based on sustainable and renewable feedstocks and fossil-free energy and is well positioned for robust growth in renewable fibres, advanced materials and in decarbonisation solutions, with graphic papers continuing to generate strong cash flows.
Source: UPM
