- Stora Enso’s operating EBIT for Q2 2024 was EU161 million, significantly higher than last year’s EU37 million and above the estimate of EU156.1 million.
- Sales for the quarter were EU2.30 billion, slightly below the estimated EU2.36 billion.
- Adjusted earnings per share (EPS) were EU0.070, an improvement from a loss of EU0.27 per share last year, though below the estimate of EU0.11.
- Operating EBIT margin stood at 7%.
- Operating EBITDA reached EU312 million, representing a 58% increase year-over-year, just shy of the estimate of EU315.3 million.
- Operating EBITDA margin was 13.6%, up from 8.4% the previous year.
- For the first half of 2024, profit improvement continues, with expectations for full-year adjusted EBIT being significantly higher compared to 2023.
- Niclas Rosenlew has been appointed as the new group CFO, replacing Seppo Parvi.
- Stora Enso anticipates a gradual market recovery in 2024, driven by profitability initiatives.
- High wood costs are expected to continue affecting margins.
- Market uncertainties such as high inflation, potential strikes, and demand and price fluctuations are projected to persist through the end of the year.
- For Q3, the outlook for packaging materials is slightly positive, supported by strong order books and improving prices.
- Demand for packaging solutions in Q3 is expected to remain stable, with typical seasonal variations.
- Pulp demand in Europe and China is stable, with the European softwood pulp market balanced and no signs of improvement in China.
- CEO Hans Sohlstrom reports that a EU120m profit improvement program is advancing successfully.
- The divestment process for the Beihai operation in China is progressing, with a focus on obtaining the right value for the assets.
- Stock ratings: 13 buys, 5 holds, and 4 sells.
A look at Stora Enso OYJ Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 2 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Stora Enso OYJ, an integrated paper, packaging, and forest products company, maintains a solid long-term outlook based on its Smartkarma Smart Scores. With a top-ranking Value score, indicating strong fundamentals, the company is positioned well for sustainable growth and profitability. However, the lower Dividend score suggests that investors may not see significant returns in the form of dividends in the foreseeable future.
Although Stora Enso OYJ scores moderately for Growth, Resilience, and Momentum, showcasing steady expansion, stability, and market performance respectively, there is room for improvement to enhance these aspects further. Overall, with an established global presence in over 40 countries and a diverse range of products sold to various industries, Stora Enso OYJ presents a promising investment opportunity amid its mixed Smart Scores.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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