- UPM-Kymmene’s adjusted EBIT for Q2 2024 was €182 million, below the estimated €214.6 million.
- Sales totaled €2.55 billion, a 0.5% decrease year-over-year, falling short of the €2.64 billion estimate.
- Adjusted EPS came in at €0.23, under the expected €0.29.
- The adjusted EBIT margin stood at 7.2%.
- Adjusted EBITDA was €359 million, missing the forecast of €377.6 million.
- UPM expects full-year 2024 comparable EBIT to increase from 2023, due to higher delivery volumes, optimization of the UPM Paso de los Toros pulp mill, and lower fixed costs.
- Demand for many UPM products is anticipated to improve gradually as the destocking from 2023 is over.
- The market conditions for renewable fuels are expected to be weaker compared to the previous year.
- UPM plans to manage margins and reduce both variable and fixed costs.
- Comparable EBIT in H2 2024 is expected to exceed that of H1 2024, driven particularly by UPM Fibres.
- UPM Specialty Papers performed well despite higher pulp prices.
- Maintenance activities affected performance at pulp mills in Uruguay and at UPM Pietarsaari in Finland.
- UPM Communication Papers saw decreased profitability due to lower delivery volumes following Q1 restocking and political strikes in Finland.
- Analyst ratings: 15 buys, 6 holds, 1 sell.
A look at UPM-Kymmene OYJ Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 4 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.8 |
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
UPM-Kymmene Oyj, a company that manufactures forest products, has a positive long-term outlook based on Smartkarma Smart Scores. With strong scores in Value, Dividend, Resilience, and Momentum, the company is positioned well for future growth and stability. Their focus on magazine papers, newsprint, fine papers, and various other products contributes to their robust performance.
The company’s high scores across multiple factors indicate a solid overall outlook. UPM-Kymmene’s diverse product portfolio, including self-adhesive labels, industrial wrappings, and building materials, coupled with its presence in various countries, positions them for continued success in the market.
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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