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Stora Enso Financial Statement Release 2024: Key Highlights

On February 11, 2025, Stora Enso Oyj released its financial results for the year 2024, showcasing notable improvements in various metrics despite the challenging market landscape. The company's commitment to enhancing operational efficiency and reducing costs is evident in the reported figures.

Enhanced Sales and Earnings

In Q4 of 2024, Stora Enso achieved a sales increase of 7%, reaching EUR 2,322 million, compared to EUR 2,174 million during the same period last year. Adjusted EBIT also saw a remarkable growth, climbing to EUR 121 million from EUR 51 million, marking an increase of 138.6%. The adjusted EBIT margin significantly improved to 5.2% from 2.3% year-on-year, reflecting the effectiveness of cost-saving measures and operational adjustments.

The full year figures revealed a total sales revenue of EUR 9,049 million, a slight decline from EUR 9,396 million in 2023, primarily due to structural changes in the market. Nonetheless, adjusted EBIT increased to EUR 598 million, a significant improvement compared to EUR 342 million the previous year. The operating result, according to IFRS standards, turned positive at EUR 93 million, contrasting with a loss of EUR 322 million in 2023, underscoring the company's recovery trajectory.

Focus on Sustainability and Environmental Impact

Stora Enso's efforts in sustainability have not gone unnoticed. The company reported a commendable 53% reduction in Scope 1 and 2 greenhouse gas emissions compared to the 2019 baseline, far exceeding its original 2030 target. This achievement is a testament to its commitment to sustainable practices within the industry.

Strategic Investments and Acquisitions

In line with its growth strategy, Stora Enso announced the acquisition of Finnish sawmill company Junnikkala Oy, aimed at ensuring a consistent and efficient wood supply for its operations in Oulu. Furthermore, a significant investment of EUR 1 billion is underway for developing a consumer board packaging line in Oulu, expected to start production soon and to reach full capacity by 2027.

Financial Stability and Outlook

Cash flow performance also showed positive results, with cash flow from operations amounting to EUR 1,187 million over the year. Stora Enso's net debt increased by EUR 540 million, rising to EUR 3,707 million, mainly due to investment activities at the Oulu site. However, the net debt to adjusted EBITDA ratio improved to 3.0, reinforcing the company's commitment to maintaining financial discipline.

Moving forward, Stora Enso has opted to refrain from providing specific annual EBIT guidance, aligning with international standards. While demand for its products is expected to remain volatile, the company remains focused on cost controls and enhancing productivity in 2025. The anticipated capital expenditure for the year is forecasted between EUR 730 to 790 million, reflecting ongoing investment in growth and innovation.

Conclusion

2024 was a pivotal year for Stora Enso, marked by strategies that enhanced profitability and operational efficiency while solidifying its status as a leader in sustainable practices within the forest industry. As the company navigates ongoing challenges in the market, it is well-positioned to continue delivering value to its customers, shareholders, and the environment.

For more updates and insights, stakeholders are encouraged to join the upcoming webcast scheduled for today at 11:00 EET, where company executives will discuss these results in detail. The presentation can be accessed live via the company’s official webpage.