Similar EBIT +32% from closing 12 months in a difficult marketplace

HELSINKI, Oct. 29, 2024 /PRNewswire/ — UPM-Kymmene Company Reserve Alternate Drop (Intervening time File) 29 October 2024 at 09:40 EET

UPM Intervening time File Q3 2024:
Similar EBIT +32% from closing 12 months in a difficult marketplace

Q3 2024 highlights

• Gross sales reduced by means of 2% to EUR 2,521 million (2,584 million in Q3 2023)
• Similar EBIT greater by means of 32% to EUR 291 million, 11.5% of gross sales (220 million, 8.5%)
• Working money current was once EUR 242 million (641 million)
• Call for healing for UPM’s merchandise bogged down
• UPM Paso de los Toros pulp mill was once in complete manufacturing
• UPM received Grafityp in Belgium to boost up expansion in UPM Raflatac
• UPM closed the Hürth newsprint mill and determined at the shutdown of 1 positive paper system on the Nordland mill, Germany
• EcoVadis awarded UPM a platinum ranking in accordance with the corporate’s sustainability efficiency

Q1–Q3 2024 highlights

• Gross sales reduced by means of 3% to EUR 7,707 million (7,929 million in Q1–Q3 2023)
• Similar EBIT greater by means of 17% to EUR 806 million (689 million), and was once 10.5% (8.7%) of gross sales
• Working money current was once EUR 782 million (1,814 million)
• Web debt greater to EUR 2,804 million (2,363 million) and the web debt to EBITDA ratio was once 1.59 (1.27)
• Money budget and brandnew dedicated credit score amenities totalled EUR 3.7 billion on the finish of Q3 2024
• Sale of the Steyrermühl web site, Austria in January
• CDP recognised UPM with double ‘A’ ranking for transparency on situation exchange and woodlands

Key figures

UPM items sure measures of efficiency, monetary place and money flows, which can be supplementary efficiency measures based on the steerage issued by means of the Ecu Securities and Markets Authority (ESMA). The definitions of supplementary efficiency measures are offered in » UPM Annual Report 2023

Massimo Reynaudo, President and CEO, feedback at the effects:

“Our Q3 effects progressed each year-on-year and quarter-on-quarter, with an important contribution from the totally ramped-up UPM Paso de los Toros pulp mill. The income growth, albeit excellent, was once not up to previous anticipated because the marketplace call for of our merchandise bogged down later the encouraging get started of the 12 months. We took measures in different of our companies to assure profitability and we proceed to pluck decisive movements to assure the competitiveness of our companies and backup our expansion ambitions.

Our Q3 gross sales have been EUR 2,521 million and our similar EBIT greater by means of 32% to EUR 291 million. Our web debt was once EUR 2,804 million, 1.59 occasions EBITDA. Money budget and brandnew dedicated credit score amenities totalled at EUR 3.7 billion on the finish of the quarter, following the a success issuance of our fourth Inexperienced Bond, for EUR 600 million, in August.

At our Capital Markets Presen in September, we supplied an replace at the upcoming segment of our technique. Underneath the name “From transformation to growth” we offered a trade portfolio which is in accordance with sustainable and renewable feedstocks and fossil-free power and is definitely located for tough expansion in renewable fables, complicated fabrics and in decarbonisation answers, with impressive papers proceeding to generate sturdy money flows.

Renewable fables

Pulp marketplace call for bogged down all through the summer time and costs reduced as a result. This construction was once extra pronounced for hardwood pulp in China.

UPM Wools greater its similar EBIT. The extremely aggressive trade platform in Uruguay carried out neatly. Q3 was once the primary quarter of complete manufacturing at each pulp generators in Uruguay, paving the way in which for additional optimisation to succeed in the focused efficiency ranges.

In Finland, the plank value has reached unsustainable ranges. To assure margins, we restricted pulp manufacturing at two of our generators in September and early October and feature since began negotiations for potency measures in UPM Pulp, UPM Jungle and UPM Plank in Finland.

Complicated fabrics

Deliveries in UPM Raflatac and UPM Uniqueness Papers have been not up to initially anticipated, as call for bogged down later the sturdy get started of the 12 months. UPM Uniqueness Papers was once additionally impacted by means of top yarn prices and disease within the Chinese language positive paper marketplace. Consequently, similar EBIT within the two companies reduced. UPM Plywood carried out neatly taking into consideration the gradual development markets.

We see horny expansion potentialities in complicated fabrics within the medium to long run. We’re taking the vital competitiveness measures to be in the most productive place to seize those alternatives.

Decarbonisation answers

Within the decarbonisation answers, UPM Power noticed very low electrical energy costs all through the summer time, given the prime quantity of renewable energy past. UPM Biofuels’ feedstock prices began lowering, and up to date political selections backup a steady marketplace healing going forward.

Paintings on the UPM Biochemicals web site in Leuna, Germany, persisted at complete velocity and we’re very a lot browsing ahead to establishing the refinery over the approaching months.

Colorful papers

UPM Verbal exchange Papers progressed each volumes and income in comparison to the former quarter. To guard excellent efficiency and money past in a mature and declining marketplace, the UPM Hürth newsprint mill in Germany was once completely closed on the finish of August. A positive paper system at Nordland Papier, additionally in Germany, can be closed by means of the top of 2024.

All through the quarter, EcoVadis awarded us a Platinum score in accordance with our sustainability efficiency within the sections of circumstance, labour and human rights, ethics, and sustainable sourcing. That is any other compelling demonstration of our constancy to making price for our shoppers the usage of sustainable, renewable sources, lowering our environmental footprint, and lengthening our sure societal have an effect on. For UPM, sustainability is a core strategic price.

UPM’s sturdy and balanced trade portfolio in renewable fables, complicated fabrics and decarbonisation answers supplies us with a territory of horny expansion alternatives within the coming years. Within the wave difficult trade circumstance with a gradual marketplace healing, alternatively, our govern precedence is to additional toughen profitability and competitiveness. With those well timed and focused movements, we’re environment ourselves as much as seize the healing and era expansion in our product markets.”

Outlook for 2024

UPM’s similar EBIT in This autumn 2024 is anticipated to be on alike degree or building up from This autumn 2023 (EUR 323 million). UPM’s similar EBIT in full-year 2024 is anticipated to be on alike degree or building up from 2023.

Invitation to UPM’s webcast on Q3 2024 meantime file

A webcast and a convention name for analysts and traders will get started at 13:15 EET. The meantime file can be offered in English by means of President and CEO Massimo Reynaudo and CFO Tapio Korpeinen. Individuals can apply the webcast on-line by means of this link.

Individuals wishing to invite questions later the presentation will have to check in for the convention name. To take part within the convention name, please register here. Then registering, you are going to be supplied with phone numbers, a person ID and a convention ID to get entry to the convention. To invite a query, press *5 to your phone keypad to fix the queue.

The webcast can be to be had at www.upm.com for three hundred and sixty five days later the decision.

*

It must be famous that sure statements herein, which don’t seem to be ancient information, together with, with out limitation, the ones referring to expectancies for marketplace expansion and traits; expectancies for expansion and profitability; and statements preceded by means of “believes”, “expects”, “anticipates”, “foresees”, or alike expressions, are forward-looking statements. Since those statements are in accordance with wave plans, estimates and projections, they contain dangers and uncertainties which might purpose fresh effects to materially fluctuate from the ones expressed in such forward-looking statements. Such elements come with, however don’t seem to be restricted to: (1) running elements akin to persisted luck of producing actions and the success of efficiencies therein together with the supply and value of manufacturing inputs, persisted luck of product construction, acceptance of untouched merchandise or services and products by means of the Team’s focused shoppers, luck of the present and era collaboration preparations, adjustments in trade technique or construction plans or goals, adjustments within the stage of coverage created by means of the Team’s patents and alternative highbrow attribute rights, the supply of capital on applicable phrases; (2) trade situations, akin to energy of product call for, depth of pageant, frequent and era world marketplace costs for the Team’s merchandise and the pricing pressures thereto, monetary situation of the shoppers and the competition of the Team, the possible advent of competing merchandise and applied sciences by means of competition; and (3) common financial situations, akin to charges of economic development within the Team’s fundamental geographic markets or fluctuations in trade and rates of interest. The primary income sensitivities and the crowd’s value construction are offered on pages 178–179 of the Annual File 2023. Dangers and alternatives are mentioned on pages 34–35, and dangers and possibility control are offered on pages 133–137.

UPM, Media Family members
Mon-Fri 9:00–16:00 EET
tel. +358 40 588 3284
[email protected]

UPM
We ship renewable and accountable answers and innovate for a era past fossils throughout six trade grounds: UPM Wools, UPM Power, UPM Raflatac, UPM Uniqueness Papers, UPM Verbal exchange Papers and UPM Plywood. Because the trade chief in duty, we’re dedicated to the UN Industry Ambition for 1.5°C and the science-based goals to mitigate situation exchange. We make use of 16,600 nation international and our annual gross sales are roughly EUR 10.5 billion. Our stocks are indexed on Nasdaq Helsinki Ltd. UPM Biofore – Past fossils. www.upm.com

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This data was once dropped at you by means of Cision http://news.cision.com

https://news.cision.com/upm-kymmene-oyj/r/upm-interim-report-q3-2024-comparable-ebit–32–from-last-year-in-a-challenging-market,c4057880

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