FX.co ★ Stora Enso Q1 Results Down; Warns On Q2 Profit, Confirms FY24 Outlook

Stora Enso Oyj, a Finnish paper mill firm, has reported a significant drop of 54.5% in its net result for the first quarter, down to 84 million euros from the previous year's figure of 185 million euros.

There was also a decline in earnings per share which fell by 55.2% from the previous year, standing at 0.11 euro, with adjusted earnings per share recorded at 0.09 euro, noticeably lower than the previous year's 0.23 euro.

Adjusted EBIT saw a decrease of 33.1% from the previous year totalling 156 million euros. Meanwhile, the adjusted EBIT margin stood at 7.2%, a drop from the previous year's 8.6%.

Sales also declined by 20%, amounting to 2.16 billion euros, compared to the preceding year's figure of 2.72 billion euros.

Looking ahead, Stora Enso predicts an adverse impact on profits in the second quarter due to increased maintenance costs, higher wood prices and the impact of recent political strikes in Finland.

Despite these challenges, the company is committed to meeting its full-year 2024 adjusted EBIT guidance, aiming to surpass the full-year 2023 adjusted EBIT of 342 million euros. Stora Enso also predicts a gradual improvement in market conditions throughout 2024, projected to be driven by increased demand for consumer board and higher pulp demand and prices.