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Stora Enso's 2024 Financial Performance

Stora Enso, a leading provider of renewable products, recently announced its financial results for the year 2024, marking a significant step toward improving profitability and operational efficiency in a challenging economic environment. The results highlight the company's ability to adapt and thrive despite various market uncertainties.

Key Financial Highlights

In the fourth quarter of 2024, Stora Enso reported a 7% increase in sales, amounting to EUR 2,322 million, compared to EUR 2,174 million in the previous year. This growth trajectory is supported by an impressive rise in adjusted EBIT, which soared to EUR 121 million, a 138.6% increase from EUR 51 million year-on-year, resulting in an EBIT margin of 5.2%. Despite these positive trends, the overall operating result was impacted by significant impairments, leading to a net loss of EUR 379 million.

For the entire year, sales totaled EUR 9,049 million, a decline from EUR 9,396 million in 2023, but adjusted EBIT improved significantly from EUR 342 million to EUR 598 million. This enhancement was attributed to ongoing efforts to streamline operations and reduce fixed costs, which dropped by EUR 110 million.

Sustainable Practices and Cost Control

One of the standout achievements of Stora Enso in 2024 was its substantial progress in sustainability. The company exceeded its goal of reducing Scope 1 and 2 greenhouse gas emissions by achieving a 53% reduction by year-end, successfully surpassing its 2030 target of 50%. This reflects the company's deep commitment to environmental responsibility and sustainability.

Moreover, a profit improvement program initiated in Q1 2024, targeting EUR 120 million in annual gross fixed cost savings, is expected to bring lasting benefits to profitability from 2025 onwards. The company continues to emphasize operational excellence while navigating high wood costs and fluctuating market demands.

Strategic Acquisitions and Expansion Plans

Stora Enso's strategic acquisition of Finnish sawmill company Junnikkala Oy aims to secure a cost-effective wood supply for its packaging board site in Oulu, Finland. This not only enhances production efficiency but also extends Stora Enso's footprint in the wood products industry.

The company is investing EUR 1 billion into a new consumer board packaging line at the Oulu site, anticipated to start production shortly. This investment will be crucial for further operational efficiency and market competitiveness, despite expected challenges impacting adjusted EBIT by approximately EUR 100 million in the first half of 2025 during the ramp-up phase.

Looking Ahead

As Stora Enso heads into 2025, the company acknowledges the ongoing uncertainties in global markets, influenced by macroeconomic conditions and geopolitical events. While demand may remain volatile, the company is committed to reducing costs, improving its operational performance, and enhancing its competitive stance in the market. The outlook anticipates steady demand in certain sectors, like wood products, contrasting with challenges in fiber packaging markets.

In summary, Stora Enso's journey through 2024 illustrates its resilience and adaptability in an evolving business landscape. With an unwavering focus on sustainability and strategic growth, the company is positioned for continued success amidst forthcoming challenges.