FULLTEXT DEL 1 AV 1
Kvartalsrapport Q3 2024
===== SIDA 1 =====
Interim report
January–September 2024
===== SIDA 2 =====
List of contents
Summary 2
CEO comment 5
Events 6
Results 6
Divisions 9
Capital structure 16
Cash flow 16
Capital expenditure 17
Sustainability 18
Short-term risks 20
Sensitivity analysis 20
Legal proceedings 21
AGM 2024 21
Financials 23
IFRS section 23
Alternative performance
measures 35
Contacts 42
President and CEO Hans Sohlström:
"I am pleased to report
that our value creation
and profit improvement
programmes are
progressing well across
all divisions."
Profit improvement and
enhanced competitiveness
Value creation programmes
focused on sourcing,
operational, and commercial
efficiencies are progressing
well across all divisions. The
profit improvement
programme initiated in
Q1/2024 with a target of EUR
120 million in fixed cost
savings is expected to have
full impact from 2025.
Value from forest
Stora Enso is preparing to sell
approximately 12% of its 1.4
million hectares of forest
assets in Sweden, valued at
EUR 6.3 billion, to reduce debt
confirming the financial
value of the Company’s
forest holdings.
Beihai divestment
discontinued
Stora Enso is of the view that
the value in own use of the
assets exceeds the
achievable transaction
value, and has therefore
chosen to retain the Beihai
packaging production site
and forestry operations
within the Group.
Cover photo: Packaging Materials division's products used in food packaging (AvantForte Brown, Natura, CKB Nude,
Tambrite)
Stora Enso January–September results 2024 1 (42)
===== SIDA 3 =====
Continued growth and earnings improvement
Quarterly financial highlights
(compared to Q3/23)
• Sales increased by 6% to EUR 2,261 (2,127) million.
• Adjusted EBIT increased to EUR 175 (21) million
2
.
• Adjusted EBIT margin increased to 7.8% (1.0%).
• Operating result (IFRS) was EUR 139 (-1) million
2
.
• Earnings per share (EPS) were EUR 0.11 (-0.04) and
EPS excl. fair valuations (FV) was EUR 0.10 (-0.05).
• The value of the forest assets increased to EUR 8.8
(8.3) billion, equivalent to EUR 11.11 per share.
• Cash flow from operations amounted to EUR
271 (231) million. Cash flow after investing activities
was EUR 4 (38) million.
• Net debt increased by EUR 409 million to EUR 3,528
(3,120) million, mainly due to the board investment
at the Oulu site.
• The net debt to adjusted EBITDA (LTM
1
) ratio was 3.1
(2.4). The target to keep the ratio below 2.0 remains.
January–September result
(compared to Jan-Sept 23)
• Sales were EUR 6,727 (7,222) million.
• Adjusted EBIT was EUR 478 (292) million.
• Operating result (IFRS) was EUR 372 (4) million.
• Earnings per share (EPS) were EUR 0.26 (-0.09) and
EPS excl. fair valuations (FV) was EUR 0.25 (-0.09).
• Cash flow from operations amounted to EUR
863 (631) million. Cash flow after investing activities
was EUR -15 (-31) million.
• Adjusted ROCE excluding the Forest division (LTM
1
)
decreased to 2.7% (4.7%), the target being above
13%.
Key highlights
• The value creation programmes, centred on
sourcing, operational and commercial efficiencies,
are making good progress across all divisions.
• The profit improvement programme, initiated in
Q1/2024 with a target of EUR 120 million in fixed cost
savings, has progressed well, full impact is
expected from 2025.
• In October, Stora Enso announced that it is
preparing to sell approximately 12% of its total forest
assets of 1.4 million hectares in Sweden, valued at
EUR 6.3 billion. A sale would reduce debt, confirming
the financial value of the Company’s forest
holdings.
• Stora Enso decided in October to discontinue the
divestment process for its Beihai packaging board
production site and forestry business. Stora Enso is
of the view that the value in own use of the assets
exceeds the achievable transaction value, and has
therefore chosen to retain these operations within
the Group. As a result of the reversal of
classification as held for sale, Adjusted EBIT and IFRS
operating result for Q1 to Q3/24 decreased by EUR
7.5 million per each quarter, EUR 30 million for the full
year 2024, due to the inclusion of previously
suspended depreciation into the restated results.
2
• The consumer board investment at the Oulu site in
Finland is progressing on schedule. Production is
expected to start in the second quarter of 2025, with
full capacity estimated to be reached during 2027.
Guidance
Stora Enso's full year 2024 adjusted EBIT is expected to
be significantly higher than for the full year 2023, EUR
342 million.
Sales
EUR 2,261 million
(Q3/2023: 2,127)
Adjusted EBIT margin
7.8%
(Q3/2023: 1.0%)
Adjusted ROCE excl.
the Forest division (LTM
1
)
2.7%
(Q3/2023: 4.7%)
Net debt to
adjusted EBITDA (LTM
1
)
3.1
(Q3/2023: 2.4)
EPS (basic)
EUR 0.11
(Q3/2023: -0.04)
Cash flow from operations
EUR 271 million
(Q3/2023: 231)
1
LTM = Last 12 months
2
The classification of the Beihai site as assets held for sale has been ceased. The previously published adjusted EBIT and IFRS operating result for
January–June 2024 decreased by EUR 15 million due to the inclusion of the previously suspended depreciation into the restated results. Read more
under Restatements.
Summary
Stora Enso January–September results 2024 2 (42)
===== SIDA 4 =====
Outlook
Market and business outlook
Stora Enso's recent profitability improvement
initiatives have positively impacted the earnings trend
over the past four quarters and reduced the Group’s
net debt to EBITDA ratio in the last two quarters. Stora
Enso anticipates that the gradual market recovery will
slow down for the rest of the year, which is expected to
adversely impact its profits in the fourth quarter. This
sequential slowdown is attributed to factors such as
weak consumer board demand, corrugated board
overcapacity, and an ongoing weak construction
sector. Additionally, high wood costs are likely to
continue compressing margins. Stora Enso anticipates
persistent market volatility, including high inflation,
potential labour strikes, and slow retail growth, along
with other demand and price fluctuations through
year-end.
Packaging Materials
The seasonally low fourth quarter is expected to
encounter challenges, including decreased volumes
due to weaker demand and annual maintenance
shutdowns. The average price level across the division
is expected to be lower in the fourth quarter, despite
price increases in both consumer board and
containerboard. This is due to product mix
adjustments with a higher portion of lower-priced
containerboard compared to higher-priced
consumer board products. The planned annual
shutdowns are at five of its production sites, of which
four in consumer board including two major
integrated sites, which will also elevate fixed costs. The
persistent high cost of wood remains a primary
concern. Weak order inflow during third quarter makes
the fourth-quarter outlook uncertain. Demand for
cartonboard, kraftliner, and testliner is expected to
drop slightly, influenced by seasonal lows, while paper
demand is forecasted to grow sequentially due to
favourable seasonal effects.
Packaging Solutions
Market demand remains unpredictable and volatile,
influenced by weekly fluctuations and pervasive
overcapacity. Volumes in Western Europe are likely to
decline sequentially due to seasonal effects, with any
significant uplift from traditional peak periods like
"Black week" and Christmas not anticipated. The
Chinese market continues to struggle amid a weak
economic environment. Despite no major anticipated
cost increases in the fourth quarter, ongoing expenses
related to increased containerboard prices and the
ongoing ramp up of the corrugated packaging site in
De Lier, NL, are expected to constrain margin growth.
Biomaterials
Demand will vary across segments, but the division's
average is expected to remain unchanged quarter-
on-quarter. In China, fourth-quarter demand is poised
to rise due to low inventories, favourable seasonal
demand, and lower prices. Conversely, demand in
Europe is expected to weaken slightly, primarily due to
reduced demand for printing and writing paper
products, and tissue, although demand for fluff is
projected to remain stable. Wood prices in the Nordics
are forecasted to be high, while chemical prices are
likely to stabilise at third-quarter levels.
Wood Products
Demand for classic sawn products and pellets,
particularly for heating, is expected to rise sequentially
in the fourth quarter due to seasonal factors. Demand
for building solutions, such as construction beams and
cross-laminated timber, is anticipated to drive higher
volumes. Raw material costs in the fourth quarter are
expected to align with third-quarter levels on average,
although fixed costs may increase with volume
growth. Elevated wood costs are projected to
continue, with a year-on-year increase.
Forest
Wood markets in the Baltic Rim are forecasted to
remain constrained due to a shortage of wood, driven
by heightened demand for industrial wood (pulpwood
and sawlogs). A robust and sustainable financial
performance is expected to continue from the first
three quarters into the fourth quarter. General cost
inflation, particularly affecting logistics and harvesting
costs from the third quarter, is also expected to
impact the fourth quarter.
Long-term growth opportunities
Stora Enso maintains leading market positions in
sectors positioned for long-term growth, including
high-end consumer packaging, wood construction,
and innovative biomaterials. The Group is set to
capitalise on sustainability trends and regulatory
advancements which favour its product offerings,
enhancing its market presence and driving
continuous progress.
Market demand development by division quarter-on-quarter, Q3/2024 to Q4/2024
Packaging Materials
• Demand for consumer board in Europe is expected to be slightly weaker and slightly stronger in
China.
• European demand for containerboard is expected to be slightly stronger.
• European demand for paper is expected to be slightly stronger at a low level.
Packaging Solutions • European demand for corrugated packaging is expected to be weaker.
Biomaterials
• The average demand for the division is expected to be unchanged. Demand for softwood and
hardwood pulp in Europe is expected to be slightly weaker and slightly stronger in China.
• Demand for fluff pulp is expected to be stable.
Wood Products • Demand for sawn wood is expected to be significantly stronger due to seasonality.
• Weak demand for building solutions in the construction segment is expected to persist.
Forest
• Demand for industrial wood is expected to be stronger across all markets, leading to continued
tight market conditions in the Baltic Rim.
• Demand for pulpwood for energy use is expected to be be stronger due to seasonality.
Stora Enso January–September results 2024 3 (42)
===== SIDA 5 =====
Key figures
EUR million Q3/24 Q3/23
Change %
Q3/24–
Q3/23 Q2/24
Change %
Q3/24–
Q2/24
Q1-
Q3/24
Q1-
Q3/23
Change %
Q1-Q3/24–
Q1-Q3/23 2023
Sales 2,261 2,127 6.3 % 2,301 -1.7 % 6,727 7,222 -6.9 % 9,396
Adjusted EBITDA 328 180 82.3 % 312 5.1 % 938 777 20.7 % 989
Adjusted EBITDA margin 14.5 % 8.5 % 13.6 % 13.9 % 10.8 % 10.5 %
Adjusted EBIT
3
175 21 n/m 153 14.4 % 478 292 63.8 % 342
Adjusted EBIT margin
3
7.8 % 1.0 % 6.7 % 7.1 % 4.0 % 3.6 %
Operating result (IFRS
)3
139 -1 n/m 92 52.4 % 372 4 n/m -322
Result before tax (IFRS)
3
98 -41 n/m 43 129.9 % 235 -117 n/m -495
Net result for the period (IFRS)
3
84 -34 n/m 35 142.3 % 195 -106 284.4 % -431
Cash flow from operations 271 231 17.3 % 323 -16.2 % 863 631 36.7 % 954
Cash flow after investing activities 4 38 -90.1 % 86 -95.7 % -15 -31 53.0 % -40
Capital expenditure 229 242 -5.3 % 285 -19.6 % 741 704 5.2 % 1,125
Capital expenditure excluding
investments in biological assets 210 227 -7.4 % 263 -20.2 % 684 653 4.6 % 1,054
Depreciation and impairment charges
excl. IAC
3 125 130 -3.9 % 126 -0.8 % 376 401 -6.1 % 534
Net debt 3,528 3,120 13.1 % 3,497 0.9 % 3,528 3,120 13.1 % 3,167
Forest assets
1,3 8,758 8,256 6.1 % 8,723 0.4 % 8,758 8,256 6.1 % 8,731
Adjusted return on capital employed
(ROCE), LTM
2,3 3.7% 4.5% 2.6% 3.7% 4.5% 2.4%
Adjusted ROCE excl. Forest division, LTM
2,3
2.7% 4.7% 1.1% 2.7% 4.7% 1.0%
Earnings per share (EPS) excl. FV, EUR
3
0.10 -0.05 n/m 0.06 66.7 % 0.25 -0.09 n/m -0.73
EPS (basic), EUR
3
0.11 -0.04 n/m 0.05 131.6 % 0.26 -0.09 n/m -0.45
Return on equity (ROE), LTM
2,3
-1.2% 4.1% -2.3% -1.2% 4.1% -3.8%
Net debt/equity ratio 0.33 0.28 0.33 0.33 0.28 0.29
Net debt to LTM
2
adjusted EBITDA ratio 3.1 2.4 3.5 3.1 2.4 3.2
Equity per share, EUR
3
13.73 14.03 -2.2 % 13.60 1.0 % 13.73 14.03 -2.2 % 13.93
Average number of employees (FTE) 19,364 21,132 -8.4 % 19,469 -0.5 % 19,405 21,097 -8.0 % 20,822
1
Total forest assets value, including leased land, assets held for sale and Stora Enso's share of Tornator.
2
LTM = Last 12 months. The calculation method explained in the section Alternative performance measures.
3
Q2/24 restated, see chapter Restatements for more details.
IAC = Items affecting comparability, FV = Fair valuations and non-operational items
Adjusted key figures, items affecting comparability and other non-IFRS measures: Stora Enso’s non-IFRS measures, and the calculation and
definitions of the key figures are presented in the section Alternative performance measures.
From 1 January 2024 onwards, a slight change in terminology is applied with regards to certain key alternative performance measures. More
information in the section Changes in Alternative performance measures.
Production and external deliveries
Q3/24 Q3/23
Change %
Q3/24–
Q3/23
Q2/24
Change %
Q3/24–
Q2/24
Q1-
Q3/24
Q1-
Q3/23
Change %
Q1-Q3/24–
Q1-Q3/23
2023
Consumer board deliveries, 1,000 tonnes 870 651 33.6 % 712 22.2 % 2,261 2,057 9.9 % 2,691
Consumer board production, 1,000
tonnes 771 664 16.1 % 727 6.0 % 2,200 2,033 8.2 % 2,593
Containerboard deliveries, 1,000 tonnes 347 320 8.4 % 332 4.6 % 996 978 1.8 % 1,236
Containerboard production, 1,000
tonnes 373 386 -3.3 % 400 -6.7 % 1,152 1,198 -3.9 % 1,592
Corrugated packaging European
deliveries, million m
2 313 304 3.1 % 324 -3.2 % 917 888 3.3 % 1,167
Corrugated packaging European
production, million m
2 300 273 9.8 % 304 -1.5 % 888 836 6.2 % 1,094
Market pulp deliveries, 1,000 tonnes 494 555 -11.0 % 561 -12.0 % 1,441 1,671 -13.7 % 2,220
Wood products deliveries, 1,000 m
3
912 863 5.7 % 1,079 -15.5 % 2,869 2,940 -2.4 % 3,897
Wood deliveries, 1,000 m
3
3,108 3,003 3.5 % 3,290 -5.5 % 9,892 10,232 -3.3 % 13,667
Paper deliveries, 1,000 tonnes 156 173 -10.1 % 144 8.2 % 457 588 -22.2 % 761
Paper production, 1,000 tonnes 161 180 -11.0 % 145 11.0 % 457 583 -21.6 % 752
The comparative figures for corrugated packaging European deliveries have been adjusted.
Total planned maintenance impact
Expected and historical impact as lost value of sales and planned maintenance costs
EUR million Q4/2024
1
Q3/2024
2
Q2/2024 Q1/2024 Q4/2023 Q3/2023
Total maintenance impact 113 139 134 83 123 110
1
The estimated numbers may be impacted by unforeseen additional costs and/or volume loss in connection with the planned maintenance
stops and the restart of operations.
2
The estimate for Q3/2024 was EUR 127 million.
Key figures
Stora Enso January–September results 2024 4 (42)
===== SIDA 6 =====
CEO comment
I am pleased to report that our value creation and
profit improvement programmes are progressing well
across all divisions. These initiatives, designed to
optimise our processes and enhance our competitive
edge, remain on track. Improvements in profitability,
along with more favourable market conditions in some
segments during the third quarter, continued to
support a positive earnings trend. Our team is diligently
managing operations, sales, sourcing, working capital,
and refining processes to ensure operational
efficiency, cost competitiveness and financial strength.
And our profit improvement programme, initiated
earlier this year with a goal of 120 million euro in fixed
cost savings, is set to deliver its full impact from 2025.
We have seen a strong increase in our Group financial
performance this quarter compared to last year,
driven by higher prices and volumes, particularly in
Packaging Materials. The Biomaterials division
demonstrated strong performance, though demand
weakened during the quarter with rapidly decreasing
pulp prices. Our Forest division delivered a record high
third quarter result, driven by increased wood prices.
This resulted in a Group sales increase to 2,261 million
euro from 2,127 million euro. The adjusted EBIT rose for
the fourth consecutive quarter, reaching 175 million
euro, up from 21 million euro in 2023, due to price hikes
and cost cuts. This improved our margin to 7.8% from 1%.
Challenges persist in the Wood Products division due to
a weak construction sector and our Packaging
Solutions face price lags and market overcapacity.
Despite these challenges, our cost-saving measures
have effectively reduced both fixed and variable costs.
On 23 October, we announced that after a thorough
review and negotiations, we decided to stop the
divestment process and instead retain our Beihai
packaging production site and forestry business,
recognising that the value in own use of these assets
exceeds achievable sale proceeds. This decision
supports our strategic aim to strengthen our
leadership in the fiber-based packaging market and
by optimising the product mix, this site will continue to
enhance our position as a leading global supplier,
especially in the Asia Pacific region. We are committed
to financial prudence, with no significant capital
expenditure expected in the mid-term as we pursue
these strategic enhancements.
In our continuous pursuit of financial stability, we are
preparing for the sale of approximately 12% of our
forest assets in Sweden, covering 1.4 million hectares
valued at 6.3 billion euro. This divestment aims to
strengthen our balance sheet, underscoring the
economic value and resilience of our forest holdings.
In our ongoing commitment to prioritise financial
stability through strategic decisions such as the
divestment of forest assets in Sweden, we remain
equally dedicated to maintaining the highest
environmental standards in all operational areas.
Looking ahead, we are intensifying our focus on capital
allocation and asset strategy in growing market
segments, laying the foundation for enhanced
competitiveness and profitable growth across the
Group. Our focused profitability improvement
initiatives over the past year have strengthened Stora
Enso's financial standing. However, we anticipate a
slower market recovery for the remainder of the year
to adversely impact profits due to the effect from
declining pulp prices, subdued board demand and a
changed mix of packaging products, together with
continued high wood costs. We confirm our annual
guidance for adjusted EBIT to be significantly higher
than for the full year 2023 and remain committed to
delivering exceptional service to our customers and
robust value growth for our shareholders.
Sincerely,
Hans Sohlström
President and CEO, Stora Enso
CEO comment
Stora Enso January–September results 2024 5 (42)
===== SIDA 7 =====
Events and product update
Value creation programmes
Stora Enso's value creation programmes, centred on
variable costs and pricing, as well as sourcing,
operational and commercial efficiencies, are making
good progress across all divisions. These efforts have
had a significant positive impact on profits and cost
competitiveness, creating a new way of working that
enhances continuous improvements in processes.
Profit improvement programme proceeding
well
Stora Enso's profit improvement programme initiated
in February 2024, aimed at reducing fixed costs to
boost annualised adjusted EBIT by EUR 120 million,
is progressing successfully. The programme might
result in an estimated reduction of around 1,000
employees, but no production sites will be closed.
Reductions will be proportional to division sizes,
addressing the persistently weak and uncertain
market conditions. Full impact is expected from 2025.
Biographite demonstration plant at the Sunila
site
CarbonScape, a New Zealand-based start-up
company in which Stora Enso has a minority
shareholding, chose Stora Enso’s Sunila site in Finland
as the location for its biographite demonstration
plant, taking a step towards commercialising bio-
based graphite for lithium-ion batteries. Biographite
offers a carbon-negative alternative to traditional
graphite, helping solve supply chain and
sustainability challenges in the electric vehicle and
energy storage sectors.
New collaboration on kraft lignin supply
Södra, Sweden's largest forest-owner association, will
supply Stora Enso with kraft lignin from its Swedish
production facility, which will begin operations in 2027.
Through this supply agreement, Stora Enso and Södra
aim to enhance the development of lignin as a
sustainable non-fossil-based material, with broad
applications across various industries.
Events after the quarter
On 3 October, Stora Enso announced that it was
preparing to sell approximately 12% of its total forest
assets in Sweden.
On 23 October, Stora Enso announced that it had
decided to discontinue the divestment process of its
Beihai production site in China.
Third quarter 2024 results (compared with Q3/2023)
Sales
MEUR 2,261
(Q3/2023: 2,127)
Adjusted EBIT margin
7.8%
(Q3/2023: 1.0%)
Earnings per share
EUR 0.11
(Q3/2023: -0.04)
Group sales increased by 6%, or EUR 134 million, to EUR
2,261 (2,127) million. Higher prices in all divisions except
in Packaging Solutions and increased deliveries
especially in Packaging Materials were only partly
offset by the negative impact of structural changes.
These changes related mainly to the closures of the
De Hoop board unit in the Netherlands, the Anjala
paper machine in Finland, and the Näpi sawmill in
Estonia.
Group adjusted EBIT increased to EUR 175 (21) million,
and the adjusted EBIT margin increased to 7.8% (1.0%).
Higher prices and volumes increased profitability by
EUR 99 million and EUR 33 million, respectively.
Variable costs were EUR 19 million higher driven by
increased pulpwood costs. Fixed costs decreased by
EUR 13 million despite higher maintenance activity in
Biomaterials, mainly due to cost saving actions. Net
foreign exchange rates had a positive EUR 15 million
impact on adjusted EBIT. The impact from the
structural changes, depreciations, associated
companies and other was a positive EUR 13 million on
adjusted EBIT.
Fair valuations and non-operational items (FV) had
an impact on the operating result of EUR 0 (5) million.
Items affecting comparability (IAC) had an adverse
impact of EUR 36 (26) million on the operating result.
More details of the items affecting comparability and
fair valuation items are included in the sections for
each division and in the section Items affecting
comparability (IAC), fair valuations and non-
operational items (FV). Operating result (IFRS) was EUR
139 (-1) million.
Net financial items of EUR 41 million were EUR 1 million
higher than the corresponding period last year. Net
interest expenses of EUR 31 million increased by EUR 2
million. Other net financial expenses increased to EUR
13 (4) million. The net foreign exchange impact in
respect of cash equivalents, interest-bearing assets
and liabilities, and related foreign-currency hedges
amounted to a gain of EUR 3 (loss of EUR 7) million.
Earnings per share increased to EUR 0.11 (-0.04), and
earnings per share excluding fair valuations were EUR
0.10 (-0.05).
The adjusted return on capital employed LTM (ROCE)
was 3.7% (4.5%). Adjusted ROCE excluding the Forest
division LTM was 2.7% (4.7%).
CEO comment
Stora Enso January–September results 2024 6 (42)
===== SIDA 8 =====
Sales and adjusted EBIT margin
Sales, EUR million
Adjusted EBIT, %
Q4/22
Q1/23
Q2/23
Q3/23
Q4/23
Q1/24
Q2/24
Q3/24
0
1,000
2,000
3,000
4,000
0%
6%
12%
18%
24% Adjusted ROCE excl. Forest (LTM)
Adjusted ROCE excl. Forest division,
last 12 months
Target >13%Q4/22
Q1/23
Q2/23
Q3/23
Q4/23
Q1/24
Q2/24
Q3/24
0%
6%
12%
18%
24% Net debt to adjusted EBITDA (LTM)
Net debt, EUR million
Net debt to adjusted EBITDA, LTM
Target <2.0Q4/22
Q1/23
Q2/23
Q3/23
Q4/23
Q1/24
Q2/24
Q3/24
0
1,000
2,000
3,000
4,000
0.0
1.0
2.0
3.0
4.0
LTM = Last 12 months, the calculation method is explained in the section Alternative performance measures.
Breakdown of change in sales
Sales Q3/2023, EUR million 2,127
Price and mix 5%
Currency 0%
Volume 5%
Other sales
1
0%
Total before structural changes 9%
Structural changes
2
-3%
Total 6%
Sales Q3/2024, EUR million 2,261
1
Energy, paper for recycling (PfR), by-products etc.
2
Asset closures, major investments, divestments and acquisitions
Breakdown of change in capital employed
Capital employed 30 September 2023, EUR million 14,126
Capital expenditure excl. investments in biological
assets less depreciation 577
Investments in biological assets less depletion of
capitalised silviculture costs 6
Impairments and reversal of impairments -610
Fair valuation of forest assets 232
Unlisted securities (mainly PVO) 20
Associated companies 71
Net liabilities in defined benefit plans -46
Operating working capital and other interest-free
items, net -250
Emission rights -21
Net tax liabilities 84
Acquisition of subsidiaries 71
Disposal of subsidiaries -4
Translation difference -6
Other changes -1
Capital employed 30 September 2024 14,249
Result
Stora Enso January–September results 2024 7 (42)
===== SIDA 9 =====
January–September results 2024 (compared with January–
September 2023)
Group sales decreased by 7%, or
EUR 495 million to EUR 6,727 (7,222)
million, mainly due to structural
changes. Lower sales prices were
offset by higher deliveries. The
structural changes relate to the
paper site divestments at Hylte in
Sweden and Maxau in Germany,
and closures of the De Hoop board
site in the Netherlands, the Anjala
paper machine in Finland, the
Sunila pulp mill in Finland and the
Näpi sawmill in Estonia.
Adjusted EBIT increased to EUR 478
(292) million and the adjusted EBIT
margin increased to 7.1% (4.0%).
Lower sales prices, in all other
divisions, except Biomaterials and
Forest, decreased profitability by
EUR 125 million. Higher volumes,
despite the Finnish political strike in
2024, increased adjusted EBIT by
EUR 153 million. Lower variable costs
increased adjusted EBIT by EUR 39
million, as higher pulpwood costs
were more than offset by lower
other variable cost, especially
chemical costs.
Fixed costs were EUR 149 million
lower, mainly due to cost saving
actions. Net foreign exchange
rates increased profitability by EUR
28 million. The impact from the
structural changes, depreciations,
associated companies and other,
had an adverse impact of EUR 58
million on adjusted EBIT. Operating
result (IFRS) was EUR 372 (4) million.
Fair valuations and non-
operational items (FV) had an
adverse net impact on the
operating result of EUR 4 (-2)
million. Items affecting
comparability (IAC) had an
adverse impact of EUR 102 (290)
million on the operating result.
The main IAC and FV items are
presented in the section Items
affecting comparability (IAC),
fair valuations and non-
operational items (FV).
Sales
MEUR 6,727
(Q1–Q3/2023: 7,222)
Adjusted EBIT margin
7.1%
(Q1–Q3/2023: 4.0%)
Third quarter 2024 results (compared with Q2/2024)
Group sales decreased to EUR
2,261 (2,301) million. Higher sales
prices, especially for board
products were offset by lower
deliveries.
Adjusted EBIT increased to EUR
175 (153) million and the margin
improved to 7.8% (6.7%). Higher
sales prices increased
adjusted EBIT by EUR 14 million.
Variable costs increased by
EUR 18 million driven by higher
fiber costs, mainly pulpwood.
Volumes had a negative EUR 32
million impact. Fixed costs
were EUR 21 million lower driven
by cost reduction, profit
improvement actions and
seasonality. Net foreign
exchange rates had a positive
EUR 10 million impact on
adjusted EBIT. The impact from
structural changes,
depreciations, associated
companies and other was a
positive EUR 26 million.
Operating result (IFRS) was EUR
139 (92) million.
More details of the items
affecting comparability (IAC)
and fair valuations (FV) are
included in the sections for
each division.
Sales and adjusted EBIT margin
Sales, EUR million
Adjusted EBIT, %
Q2/2024 Q3/2024
0
500
1,000
1,500
2,000
2,500
0%
2%
4%
6%
8%
10%
Result
Stora Enso January–September results 2024 8 (42)
===== SIDA 10 =====
Packaging Materials
• Solid quarter with high
operating rates and results
from profit improvement
programme
• Price increases improved
the result in
containerboard
• The order inflow weakened
for all segments during Q3
• Consumer board price
increases successfully
implemented on renewed
contracts, representing a
small portion of total
volume
2023 2024
Q1 — —
Q2 Beihai, Ostrołęka, Langerbrugge Beihai, Langerbrugge
Q3 Anjalankoski, Heinola, Ostrołęka, Oulu,
Varkaus, Ingerois Oulu, Varkaus, Heinola
Q4 Fors, Imatra, Skoghall Anjalankoski, Fors, Imatra, Ostrołęka,
Skoghall
Adjusted ROOC (LTM)
3.8%
(Target: >20%)
Planned maintenance shutdowns
• Sales increased by 11%, or EUR 112
million, to EUR 1,169 million.
Higher volumes and
significantly higher
containerboard prices were
only partly offset by the
adverse impact from
production unit/line closures
during 2023.
• Adjusted EBIT increased by EUR
107 million to EUR 73 million
driven by improved topline and
lower fixed costs. Higher cost of
fiber was offset by lower
energy, chemicals and other
variable costs.
• Adjusted ROOC (LTM) was 3.8%
(1.2%), below the long-term
target of >20%.
Sales and adjusted EBIT margin
Sales, EUR million Adjusted EBIT, %
Q4/22
Q1/23
Q2/23
Q3/23
Q4/23
Q1/24
Q2/24
Q3/24
0
300
600
900
1,200
1,500
-4%
0%
4%
8%
12%
16%
20%
EUR million Q3/24 Q3/23
Change %
Q3/24–
Q3/23 Q2/24
Change %
Q3/24–
Q2/24
Q1-
Q3/24
Q1-
Q3/23
Change %
Q1-Q3/24–
Q1-Q3/23 2023
Sales 1,169 1,057 10.6 % 1,138 2.7 % 3,407 3,512 -3.0 % 4,557
Adjusted EBITDA 147 46 219.3 % 127 16.3 % 400 232 72.5 % 267
Adjusted EBITDA margin 12.6 % 4.4 % 11.1 % 11.8 % 6.6 % 5.9 %
Adjusted EBIT
2
73 -34 n/m 53 38.7 % 178 -15 n/m -57
Adjusted EBIT margin
2
6.3 % -3.2 % 4.6 % 5.2 % -0.4 % -1.3 %
Fair valuations and non-operational
items
1 -1 0 n/m -1 4.1 % -3 0 n/m 12
Items affecting comparability (IAC)
1
-10 -4 -142.2 % -27 63.0 % -42 -123 65.9 % -597
Operating result (IFRS)
2
62 -38 262.6 % 24 155.7 % 133 -138 197.0 % -642
Adjusted EBIT, LTM
2
135 44 205.5 % 28 n/m 135 44 205.5 % -57
Operating capital, LTM average
2
3,524 3,640 -3.2 % 3,516 0.2 % 3,524 3,640 -3.2 % 3,580
Adjusted ROOC, LTM
2
3.8 % 1.2 % 0.8 % 3.8 % 1.2 % -1.6 %
Cash flow from operations
2
130 140 -7.5 % 64 103.6 % 353 215 64.2 % 370
Cash flow after investing activities
2
-56 20 n/m -99 43.6 % -283 -176 -61.1 % -235
Board and paper deliveries, 1,000 tonnes 1,440 1,215 18.5 % 1,264 13.9 % 3,929 3,787 3.8 % 4,963
Board and paper production, 1,000 tonnes 1,304 1,230 6.1 % 1,272 2.6 % 3,809 3,719 2.4 % 4,843
1
The
IAC for Q3/24 included EUR -10 million restructuring costs related to various units, mainly due to profit improvement programme actions. The
IAC for Q3/23 included costs related to closure of De Hoop EUR -4 million and other restructuring costs of EUR -1 million. The fair valuations for Q3/24
included non-operational fair valuation changes of biological assets of EUR -1 (0) million.
2
Q2/24 restated, see chapter Restatements for more details.
LTM = Last 12 months
Segments
Stora Enso January–September results 2024 9 (42)
===== SIDA 11 =====
Packaging Materials
Market development during Q3/2024
Product Market
Demand Q3/24
compared with
Q3/23
Demand Q3/24
compared with
Q2/24
Price Q3/24
compared with
Q3/23
Price Q3/24
compared with
Q2/24
Consumer board Europe Significantly stronger Stable Slightly lower Stable
Kraftliner Global Slightly stronger Slightly weaker Higher Higher
Testliner Europe Slightly stronger Slightly weaker Significantly higher Significantly higher
Paper Europe Slightly stronger Weaker Significantly lower Stable
Source: Fastmarket RISI, Fastmarket FOEX, CEPI, Numera Analytics, Stora Enso. Consumer board prices include FBB only.
Segments
Stora Enso January–September results 2024 10 (42)
===== SIDA 12 =====
Packaging Solutions
• Margin pressure due to
increased containerboard
costs
• Volumes improved slightly,
however selling prices
were under pressure due
to overcapacity and soft
demand
• Ramp up of the new
corrugated packaging site
in The Netherlands
burdened the result
Adjusted ROOC (LTM)
-0.3%
(Target: >15%)
Sales YoY
-2%
Adjusted EBIT margin
-2.5%
(Q3/2023: 5.4%)
• Sales decreased by 2% or EUR 5
million to EUR 262 million. Sales
were negatively impacted by
lower selling prices compared to
last year, which were caused by
earlier declines in the prices of
containerboard, the main input
material, and by market
overcapacity.
• Adjusted EBIT decreased by EUR
21 million to EUR -6 million,
mainly impacted by high
margin pressure. This pressure
primarily resulted from a
contractual lag in passing the
sequentially increased
containerboard costs in Q3 this
year onto customers.
• Adjusted ROOC (LTM) was -0.3%,
below the long-term target of
>15%.
Sales and adjusted EBIT margin
Sales, EUR million Adjusted EBIT, %
Q4/22
Q1/23
Q2/23
Q3/23
Q4/23
Q1/24
Q2/24
Q3/24
0
50
100
150
200
250
300
-3%
0%
3%
6%
9%
12%
15%
18%
EUR million Q3/24 Q3/23
Change %
Q3/24–
Q3/23 Q2/24
Change %
Q3/24–
Q2/24
Q1-
Q3/24
Q1-
Q3/23
Change %
Q1-Q3/24–
Q1-Q3/23 2023
Sales 262 266 -1.7 % 254 2.9 % 740 830 -10.8 % 1,077
Adjusted EBITDA 13 31 -57.4 % 18 -27.6 % 50 87 -42.4 % 111
Adjusted EBITDA margin 5.1 % 11.7 % 7.2 % 6.8 % 10.5 % 10.3 %
Adjusted EBIT -6 14 -144.8 % -1 n/m -9 37 -122.9 % 43
Adjusted EBIT margin -2.5 % 5.4 % -0.4 % -1.2 % 4.5 % 4.0 %
Items affecting comparability (IAC)
1
-1 0 -146.4 % -3 52.8 % -6 -26 74.8 % -26
Operating result (IFRS) -8 14 -154.9 % -4 -114.2 % -15 12 -227.0 % 17
Adjusted EBIT, LTM -3 42 -106.6 % 18 -115.5 % -3 42 -106.6 % 43
Operating capital, LTM average 1,023 709 44.4 % 1,034 -1.0 % 1,023 709 44.4 % 874
Adjusted ROOC, LTM -0.3 % 6.0 % 1.8 % -0.3 % 6.0 % 4.9 %
Cash flow from operations 24 40 -39.8 % 24 2.5 % 54 98 -44.4 % 145
Cash flow after investing activities 14 21 -31.3 % 14 4.3 % 22 36 -38.3 % 62
Corrugated packaging European
deliveries, million m
2 317 304 4.3 % 326 -2.9 % 926 900 2.9 % 1,178
Corrugated packaging European
production, million m
2 300 273 9.8 % 304 -1.5 % 888 836 6.2 % 1,094
1
The
IAC for Q3/24 included EUR -1 million restructuring costs and asset impairments.
LTM = Last 12 months
The comparative figures for corrugated packaging European deliveries have been adjusted.
Market development during Q3/2024
Product Market
Demand Q3/24
compared with
Q3/23
Demand Q3/24
compared with
Q2/24
Price Q3/24
compared with
Q3/23
Price Q3/24
compared with
Q2/24
Corrugated packaging Europe Slightly stronger Slightly stronger Slightly lower Slightly higher
Source: Fastmarket RISI
Segments
Stora Enso January–September results 2024 11 (42)
===== SIDA 13 =====
Biomaterials
• Higher sales prices year-
on-year yet sequentially
pulp prices decreased
across all pulp grades
and markets.
• New market capacity
ramp-ups affected
supply demand balance
• Weakened overall pulp
demand mainly due to
seasonality
• Global inventories
increased to above the
5-year average
2023 2024
Q1 Veracel —
Q2 Montes del Plata, Skutskär Montes del Plata, Skutskär
Q3 — Enocell, Veracel
Q4 Enocell —
Adjusted ROOC (LTM)
8.0%
(Target: >15%)
Planned maintenance shutdowns
• Sales increased by 10%, or EUR
36 million to EUR 380 million.
Sales prices were higher, while
deliveries were lower due to
slower demand, and planned
annual maintenance
shutdown.
• Adjusted EBIT increased by EUR
39 million to EUR 43 million,
primarily driven by higher sales
prices compared to Q3/2023.
• Adjusted ROOC (LTM) was 8.0%,
below the long-term target of
>15%.
Sales and adjusted EBIT margin
Sales, EUR million Adjusted EBIT, %
Q4/22
Q1/23
Q2/23
Q3/23
Q4/23
Q1/24
Q2/24
Q3/24
0
200
400
600
800
-10%
0%
10%
20%
30%
40%
EUR million Q3/24 Q3/23
Change %
Q3/24–
Q3/23 Q2/24
Change %
Q3/24–
Q2/24
Q1-
Q3/24
Q1-
Q3/23
Change %
Q1-Q3/24–
Q1-Q3/23 2023
Sales 380 345 10.4 % 413 -7.9 % 1,168 1,212 -3.6 % 1,587
Adjusted EBITDA 74 38 93.7 % 99 -24.6 % 263 186 41.3 % 256
Adjusted EBITDA margin 19.6 % 11.1 % 23.9 % 22.5 % 15.3 % 16.1 %
Adjusted EBIT 43 5 n/m 63 -31.5 % 164 83 97.0 % 118
Adjusted EBIT margin 11.4 % 1.4 % 15.3 % 14.1 % 6.9 % 7.4 %
Fair valuations and non-operational
items
1 5 -3 291.7 % 3 59.5 % 10 1 n/m 25
Items affecting comparability (IAC)
1
-2 -17 87.5 % -1 -139.9 % -4 -119 96.8 % -224
Operating result (IFRS) 46 -15 n/m 66 -29.3 % 170 -34 n/m -81
Adjusted EBIT, LTM 199 333 -40.2 % 160 24.0 % 199 333 -40.2 % 118
Operating capital, LTM average 2,493 2,716 -8.2 % 2,528 -1.4 % 2,493 2,716 -8.2 % 2,625
Adjusted ROOC, LTM 8.0 % 12.2 % 6.3 % 8.0 % 12.2 % 4.5 %
Cash flow from operations
2
101 73 38.1 % 139 -27.4 % 369 361 2.4 % 431
Cash flow after investing activities
2
56 25 120.7 % 98 -42.9 % 241 208 16.3 % 234
Pulp deliveries, 1,000 tonnes 521 580 -10.1 % 537 -2.9 % 1,594 1,710 -6.8 % 2,277
1
The
IAC for Q3/24 included EUR -2 million environmental provision increase. The IAC for Q3/23 included EUR -16 million of costs related to the
closure of the Sunila mill and other restructuring costs of EUR -2 million. The fair valuations for Q3/24 included non-operational fair valuation
changes of biological assets of EUR 5 (-3) million.
2
Q2/24 restated, see chapter Restatements for more details.
LTM = Last 12 months
Market development during Q3/2024
Product Market
Demand Q3/24
compared with Q3/23
Demand Q3/24
compared with
Q2/24
Price Q3/24
compared with
Q3/23
Price Q3/24
compared with
Q2/24
Softwood pulp Europe Slightly stronger Slightly weaker Significantly higher Slightly higher
Hardwood pulp Europe Significantly stronger Slightly weaker Significantly higher Lower
Hardwood pulp China Significantly weaker Slightly stronger Significantly higher Significantly lower
Source: PPPC, Fastmarket FOEX, Fastmarket RISI, Stora Enso
Segments
Stora Enso January–September results 2024 12 (42)
===== SIDA 14 =====
Wood Products
• Stronger demand year-on-
year, but continued weak
markets and low
construction activity
• Higher sales prices and
volumes for sawn wood
• Improvement actions
taken to mitigate increases
in raw material costs
• Low building activity
continued to suppress
demand for Cross
Laminated Timber (CLT)
and Laminated Veneer
Lumber (LVL)
Photo: WO2 ©Patrick Raffin
Adjusted ROOC (LTM)
-5.0%
(Target: >20%)
Sales YoY
+3%
Adjusted EBIT margin
-0.7%
(Q3/2023: -6.1%)
• Sales increased by 3%, or EUR 9
million, to EUR 359 million,
primarily due to higher sales
prices and volumes for sawn
wood.
• Adjusted EBIT increased by EUR
19 million to EUR -2 million, driven
by higher volumes and prices,
and a EUR 10 million insurance
claim compensation offsetting
increased raw material costs.
• Continued cost mitigation
actions contributed to the
improvement of results.
• Adjusted ROOC (LTM) was below
the long-term target of >20% at
-5.0% (-7.2%).
Sales and adjusted EBIT margin
Sales, EUR million
Adjusted EBIT, %
Q4/22
Q1/23
Q2/23
Q3/23
Q4/23
Q1/24
Q2/24
Q3/24
0
200
400
600
-10%
0%
10%
20%
30%
EUR million Q3/24 Q3/23
Change %
Q3/24–
Q3/23 Q2/24
Change %
Q3/24–
Q2/24
Q1-
Q3/24
Q1-
Q3/23
Change %
Q1-Q3/24–
Q1-Q3/23 2023
Sales 359 349 2.7 % 414 -13.4 % 1,122 1,239 -9.4 % 1,580
Adjusted EBITDA 8 -10 182.5 % 17 -54.4 % 27 -1 n/m -17
Adjusted EBITDA margin 2.2 % -2.8 % 4.2 % 2.4 % -0.1 % -1.0 %
Adjusted EBIT -2 -21 88.7 % 7 -134.7 % -5 -38 87.6 % -64
Adjusted EBIT margin -0.7 % -6.1 % 1.7 % -0.4 % -3.0 % -4.1 %
Items affecting comparability (IAC)
1
0 -1 83.8 % 0 -193.6 % 0 -9 96.8 % -22
Operating result (IFRS) -3 -22 88.6 % 7 -135.5 % -5 -47 89.4 % -86
Adjusted EBIT, LTM -31 -51 39.1 % -50 37.9 % -31 -51 39.1 % -64
Operating capital, LTM average 630 713 -11.7 % 654 -3.8 % 630 713 -11.7 % 687
Adjusted ROOC, LTM -5.0 % -7.2 % -7.7 % -5.0 % -7.2 % -9.3 %
Cash flow from operations
2 46 38 21.0 % 32 41.8 % 48 28 71.6 % 43
Cash flow after investing activities
2 32 31 5.2 % 26 26.6 % 11 4 168.4 % 3
Wood products deliveries, 1,000 m
3
876 822 6.5 % 1,029 -14.9 % 2,753 2,812 -2.1 % 3,727
1
The IAC for Q3/23 included EUR -1 million restructuring costs.
2
Q2/24 restated, see chapter Restatements for more details.
LTM = Last 12 months
Market development during Q3/2024
Product Market
Demand Q3/24
compared with Q3/23
Demand Q3/24
compared with Q2/24
Price Q3/24 compared
with Q3/23
Price Q3/24 compared
with Q2/24
Wood products Europe Significantly stronger Significantly weaker Higher Stable
Wood products Overseas Weaker Significantly weaker Slightly higher Stable
Source: Stora Enso
Segments
Stora Enso January–September results 2024 13 (42)
===== SIDA 15 =====
Forest
• Record high third quarter
result driven by
increased wood prices,
strong demand, and
good operational
performance in all areas
• Continued high demand
for all wood assortments
in the Nordics, with prices
increasing both year-on-
year and quarter-on-
quarter
• The forest valuation
remained stable at EUR
8.8 billion , equivalent to
EUR 11.11 per share
Adjusted ROCE (LTM)
5.1%
(Target: >3.5%)
Sales YoY
+30%
Total value of forest assets
EUR 8.8 billion
(Q3/2023: EUR 8.3 billion)
• Sales increased by 30%, or EUR
161 million, to EUR 695 million,
mainly due to higher volumes
and wood prices.
• A record high third quarter
adjusted EBIT increased by EUR
22 million to EUR 81 million
reflecting strong operational
performance in the Group's
forest assets and wood supply.
• Adjusted ROCE (LTM), at 5.1%
(4.3%), was above the 3.5%
long-term target.
Sales and adjusted EBIT margin
Sales, EUR million
Adjusted EBIT, %
Q4/22
Q1/23
Q2/23
Q3/23
Q4/23
Q1/24
Q2/24
Q3/24
0
200
400
600
800
0%
6%
12%
18%
24%
EUR million Q3/24 Q3/23
Change %
Q3/24–
Q3/23 Q2/24
Change %
Q3/24–
Q2/24
Q1-
Q3/24
Q1-
Q3/23
Change %
Q1-Q3/24–
Q1-Q3/23 2023
Sales
1
695 534 30.2 % 690 0.7 % 2,043 1,841 11.0 % 2,490
Adjusted EBITDA 96 72 34.0 % 94 2.4 % 270 215 25.9 % 305
Adjusted EBITDA margin 13.8 % 13.4 % 13.6 % 13.2 % 11.7 % 12.2 %
Adjusted EBIT 81 59 37.0 % 76 6.5 % 228 178 27.9 % 253
Adjusted EBIT margin 11.7 % 11.1 % 11.0 % 11.1 % 9.7 % 10.2 %
Fair valuations and non-operational
items
2 -9 -5 -83.4 % -29 68.6 % -45 -14 -212.1 % 206
Items affecting comparability (IAC)
2
-3 3 -204.4 % 2 -254.0 % -3 -2 -57.7 % 2
Operating result (IFRS)
3
69 57 20.7 % 49 41.7 % 180 162 11.3 % 461
Adjusted EBIT, LTM 303 240 26.3 % 281 7.8 % 303 240 26.3 % 253
Capital employed, LTM average 5,925 5,620 5.4 % 5,834 1.6 % 5,925 5,620 5.4 % 5,740
Adjusted ROCE, LTM 5.1 % 4.3 % 4.8 % 5.1 % 4.3 % 4.4 %
Cash flow from operations
4
30 -12 n/m 116 -73.7 % 164 16 n/m 70
Cash flow after investing activities
4
18 -24 173.9 % 100 -82.1 % 126 -20 n/m 19
Wood deliveries, 1,000 m
3
8,104 7,069 14.6 % 8,587 -5.6 % 24,960 24,552 1.7 % 32,401
Operational fair value change of
biological assets 27 27 -1.1 % 29 -6.4 % 91 86 5.3 % 120
1
In Q3/24, internal wood sales to Stora Enso divisions represented 62% of net sales, external sales to other forest companies represented 38%.
2
The
IAC for Q3/24 included EUR -3 million mainly related to environmental provision costs. The IAC for Q3/23 included reversal of restructuring
costs of EUR 3 million. The fair valuations for Q3/24 included non-operational items of associated companies of EUR -9 (-5) million. The fair
valuations for Q3/24 additionally included a EUR -1 million impact from adjustments for differences between the fair value and acquisition cost of
forest assets upon disposal.
3
Includes the full fair value change of the Nordic biological assets (standing trees)
4
Q2/24 restated, see chapter Restatements for more details. LTM = Last 12 months
Market development during Q3/2024
Product Market
Demand Q3/24
compared with Q3/23
Demand Q3/24
compared with Q2/24
Price Q3/24 compared
with Q3/23
Price Q3/24 compared
with Q2/24
Pulp wood, Finland Europe Significantly stronger Slightly stronger Significantly higher Higher
Sawlogs, Finland Europe Significantly stronger Stable Higher Slightly higher
Pulpwood, Sweden Europe Significantly stronger Significantly stronger Significantly higher Higher
Sawlogs, Sweden Europe Significantly weaker Significantly weaker Significantly higher Significantly higher
Source: Stora Enso
Segments
Stora Enso January–September results 2024 14 (42)
===== SIDA 16 =====
Segment Other
The segment Other includes the reporting of the emerging businesses as well as Stora Enso’s
shareholding in the energy company Pohjolan Voima (PVO), and the Group’s shared services
and administration.
EUR million Q3/24 Q3/23
Change %
Q3/24–
Q3/23 Q2/24
Change %
Q3/24–
Q2/24
Q1-
Q3/24
Q1-
Q3/23
Change %
Q1-Q3/24–
Q1-Q3/23 2023
Sales 37 179 -79.2 % 36 4.2 % 129 756 -82.9 % 964
Adjusted EBITDA -14 -11 -29.3 % -30 52.3 % -53 16 n/m 18
Adjusted EBITDA margin -38.1 % -6.1 % -83.2 % -40.8 % 2.1 % 1.9 %
Adjusted EBIT -16 -15 -8.1 % -32 48.3 % -60 2 n/m 1
Adjusted EBIT margin -44.3 % -8.5 % -89.2 % -46.0 % 0.3 % 0.1 %
Fair valuations and non-operational
items
1 5 12 -56.7 % 11 -53.3 % 33 15 123.0 % -13
Items affecting comparability (IAC)
1
-20 -6 -201.4 % -17 -15.5 % -46 -12 -292.0 % -28
Operating result (IFRS) -31 -10 -219.9 % -38 18.0 % -72 5 n/m -41
Cash flow from operations
2 -60 -47 -26.3 % -51 -16.9 % -126 -86 -46.8 % -105
Cash flow after investing activities
2 -61 -35 -74.1 % -53 -15.2 % -131 -83 -58.4 % -123
1
The
IAC for Q3/24 included EUR -14 of consulting costs related to profit improvement programme, EUR -1 million other restructuring costs, EUR -7
million related to closure of De Hoop and EUR 2 million reversal of provisions related to closure of Sunila. The
IAC in Q3/23 included EUR -14 million
related to disposal of biocomposite business, EUR 4 million related to restructuring of Kvarnsveden, EUR 1 million to restructuring of Veitsiluoto, EUR 1
million related to disposal of Hylte site, EUR -1 million related to disposal of Nymölla site, EUR 3 million related to disposal of Maxau site and EUR -1
million other restructuring costs. The fair valuations for Q3/24 included non-cash income and expenses related to CO2 emission rights and
liabilities of EUR 5 (12) million.
2
Q2/24 restated, see chapter Restatements for more details.
• Sales decreased by EUR 142 million to EUR 37 million.
The main impacts were largely attributable to
lower internal invoicing from the new
decentralised operating model, and lower energy
sales due to lower market prices.
• Adjusted EBIT decreased by EUR 1 million to EUR -16
million, mainly due to lower margins for electricity
sales and legacy costs related to closed
production sites.
• The divisions are charged for electricity at market
prices. Through its 16.1% shareholding in the Finnish
energy company Pohjolan Voima (PVO), Stora
Enso is entitled to receive, at cost, 8.9% of the
electricity produced by the Olkiluoto nuclear
reactors, and 20.6% of the electricity from the
hydropower plants.
Capital structure Q3/2024 (compared with Q2/2024)
EUR million 30 Sep 2024 30 Jun 2024 31 Dec 2023 30 Sep 2023
Fixed assets
1
14,326 14,257 14,206 14,014
Associated companies 936 922 926 865
Operating working capital, net
2
492 414 488 752
Non-current interest-free items, net -243 -231 -252 -184
Operating capital total
3
15,510 15,362 15,368 15,447
Net tax liabilities -1,262 -1,246 -1,312 -1,321
Capital employed
3
14,249 14,115 14,056 14,126
Equity attributable to owners of the Parent
3
10,826 10,722 10,985 11,067
Non-controlling interests
3
-106 -103 -97 -61
Net debt 3,528 3,497 3,167 3,120
Financing total
3
14,249 14,115 14,056 14,126
1
Fixed assets include goodwill, other intangible assets, property, plant and equipment, right-of-use assets, forest assets, emission rights, and
unlisted securities.
2
Operating working capital, net includes inventories, trade receivables, trade payables and all other short-term operating receivables, payables,
accruals, and provisions.
3
30 Jun 2024 restated, see chapter Restatements for more details..
Net debt increased by EUR 31 million to EUR 3,528
(3,497) million during the third quarter. The ratio of net
debt to the last 12 months’ adjusted EBITDA was at 3.1
(3.5). The net debt/equity ratio on 30 September 2024
remained stable at 0.33 (0.33). The average interest
expense rate on borrowings at the reporting date
was 4.1% (4.1%). Cash and cash equivalents net of
overdrafts decreased by EUR 75 million to EUR 1,978
million.
Stora Enso had in total EUR 800 million committed
undrawn credit facilities as per 30 September 2024.
Additionally, the Company has access to EUR 1,100
million statutory pension premium loans in Finland.
In July, Stora Enso secured a EUR 435 million long-term
loan from the European Investment Bank to fund its
EUR 1 billion investment in the Oulu mill, Finland. Loan
repayment extends until 2036, and it is currently
undrawn.
Segments
Stora Enso January–September results 2024 15 (42)
===== SIDA 17 =====
Operating working capital, i.e. Inventories, trade
receivables and trade payables, decreased by EUR
368 million year-on-year. Other operating working
capital increased by EUR 108 million year-on-year.
Valuation of forest assets
The value of total forest assets, including leased land
and Stora Enso's share of Tornator's forest assets,
increased sequentially, from Q2/2024 to Q3/2024, by
EUR 35 million to EUR 8,758 (8,723) million. The increase
was mainly due to the impact of foreign exchange
rates. Year-on-year, the fair value of total forest
assets increased by EUR 502 million to EUR 8,758
(8,256) million.
Year-on-year, the fair value of biological assets,
including Stora Enso's share of Tornator, increased by
EUR 514 million to EUR 6,158 (5,644) million. The value of
forest land, including leased land and Stora Enso's
share of Tornator, decreased by EUR 12 million to EUR
2,600 (2,611) million.
Credit ratings
Rating agency Long/short-term rating Valid from
Fitch Ratings BBB- (stable) 4 August 2023
Moody’s Baa3 (stable) / P-3 17 November 2023
Cash flow Q3/2024 (compared with Q2/2024)
Cash flow (non-IFRS)
EUR million Q3/24 Q3/23
Change %
Q3/24–
Q3/23 Q2/24
Change %
Q3/24–
Q2/24
Q1-
Q3/24
Q1-
Q3/23
Change %
Q1-Q3/24–
Q1-Q3/23 2023
Adjusted EBITDA 328 180 82.3 % 312 5.1 % 938 777 20.7 % 989
IAC on adjusted EBITDA -35 -11 -214.5 % -38 8.0 % -93 -120 22.7 % -126
Other adjustments -50 -37 -34.8 % -43 -14.7 % -113 -118 4.6 % -210
Change in working capital 28 99 -72.2 % 92 -70.2 % 130 92 41.2 % 300
Cash flow from operations 271 231 17.3 % 323 -16.2 % 863 631 36.7 % 954
Cash spent on fixed and biological
assets -267 -193 -38.0 % -237 -12.6 % -877 -661 -32.7 % -989
Acquisitions of associated companies 0 0 n/m 0 -170.8 % 0 -2 84.1 % -5
Cash flow after investing activities 4 38 -90.1 % 86 -95.7 % -15 -31 53.0 % -40
Cash flow after investing activities was EUR 4 (86)
million. Working capital decreased by EUR 28 million,
mainly due to lower trade receivables and higher
trade payables. Cash spent on fixed and biological
assets was EUR 267 million. Payments related to the
previously announced provisions amounted to EUR 19
million. Cash flow from operations at EUR 271 (323)
million was strong due to increased adjusted EBITDA
and due to working capital reduction.
EUR million
Cash flow from operations
Cash flow after investing activities
Q3/23 Q4/23 Q1/24 Q2/24 Q3/24
-100
0
100
200
300
400
Results
Stora Enso January–September results 2024 16 (42)
===== SIDA 18 =====
Capital expenditure Q3/2024 (compared with Q3/2023)
Additions to fixed and biological assets totalled EUR
229 (242) million, of which EUR 210 (227) million were
fixed assets and EUR 19 (15) million biological assets.
Depreciations and impairment charges excluding
IACs totalled EUR 125 (130) million. Additions in fixed
and biological assets had a cash outflow impact of
EUR 267 (193) million.
Capital expenditure by division
EUR million Q3/24 Q1-Q3/24 Investment
to be finalised
Packaging Materials 152 519 Oulu consumer board investment in Finland 2025
Packaging Solutions 11 29
Biomaterials 46 121 Skutskär fluff pulp, winder and roll handling
Enocell unbleached kraft pulp (UKP)
2025
2024
Wood Products 9 29
Forest 4 17
Other 7 26
Total 229 741
Capital expenditure and depreciation forecast 2024
EUR million Forecast 2024
Capital expenditure 1,030–1,130
Depreciation and depletion of capitalised silviculture costs 610–660
Stora Enso’s capital expenditure forecast includes
approximately EUR 80 million for the Group's forest
assets.
The depletion of capitalised silviculture costs is
forecast to be EUR 75–85 million.
Results
Stora Enso January–September results 2024 17 (42)
===== SIDA 19 =====
Key sustainability targets and performance
Stora Enso contributes to the circular bioeconomy transition in the three areas in which it has the biggest
impact and opportunities: climate change, circularity, and biodiversity. The foundation for these is the conduct
of everyday business in a responsible manner.
• Stora Enso is renewing the
energy set-up and
process equipment at the
Heinola fluting site to
replace the remaining
fossil-based fuels with
renewable bioenergy. This
will reduce the site's
greenhouse gas emissions
by over 90%, contributing
to the Group's climate
target. The construction
work is expected to be
completed in the latter
half of 2025.
• An environmental incident
occurred in Hukkajoki,
Finland, when a sub-
contractor's forestry
machinery crossed a river
inhabited by endangered
freshwater pearl mussel.
Stora Enso takes
responsibility for the
incident, which took place
despite the presence of
strict guidelines. Following
an internal investigation, a
range of corrective
measures are being
implemented.
Climate change
Stora Enso’s science-based target for 2030 is to
reduce absolute Scope 1 and 2 greenhouse gas
(CO2e) emissions by 50% from the 2019 baseline, in line
with the 1.5-degree scenario. Furthermore, the Group
is committed to reducing Scope 3 emissions by 50%
from the 2019 baseline by 2030.
By the end of the Q3/2024, the Scope 1 and 2 CO2e
emissions were 1.32 million tonnes or 49% less than in
the base year. Compared with Q3/2023, the decrease
is mainly attributed to both active measures to
reduce emissions, and site and production line
closures. The Group continues to further lower
emissions by improving energy efficiency, replacing
fossil fuels with renewables, and increasing the share
of non-fossil electricity.
Direct and indirect CO2e emissions
(Scope 1+2, rolling four quarters)
1, 2
Million tonnes
0%
-12%-13%
-27%
-42%-46%-49% -50%
CO2e million tonnes, effective
CO2e million tonnes, target -50%
% reduction
2019
2020
2021
2022
2023
30 Jun 2024
30 Sep 2024
2024
2025
2026
2027
2028
2029
2030
0.0
0.4
0.8
1.2
1.6
2.0
2.4
2.8
In 2023, Stora Enso's estimated Scope 3 CO2e
emissions were 4.95 million tonnes or 34% less than in
the base year. The decrease in emissions was mainly
a result of site and production line closures. Stora Enso
continues to further improve its Scope 3 performance
by enhancing efficiency and lowering carbon
intensity in the value chain together with raw material
suppliers, logistics suppliers, and customers.
CO2e emissions along the value chain (Scope 3)
1
Million tonnes
0% -3% 3%
-24%
-34%
-50%
CO2e million tonnes, estimated
CO2e million tonnes, target -50%
% reduction
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
0
1
2
3
4
5
6
7
8
1
Calculated as rolling four quarters. For more on definitions, see Calculation of key sustainability figures.
2
Comparative figures are recalculated
due to additional data after previous interim reports.
Sustainability
Stora Enso January–September results 2024 18 (42)
===== SIDA 20 =====
Circularity
Stora Enso's target is to reach 100% recyclable
products by 2030. By the end of 2023, 94% (2022: 94%)
of the Group's products were technically recyclable.
Stora Enso aims to ensure the recyclability of
products through an increased focus on circularity in
innovation processes and collaborates actively with
customers and partners to set up infrastructure to
improve the actual recycling of products.
Share of technically recyclable products
1, 2
94%
6%
Technically recyclable products
Balance to 2030 target
Target 2030: 100%
1
As of 31 December 20232
For definitions, see Calculation of key sustainability figures.
Biodiversity
After the environmental incident in Finland, Stora Enso
has, and continues to, introduce robust measures to
prevent similar events. Stora Enso remains fully
committed to the long-term target to achieve a net
positive impact on biodiversity in its own forests and
plantations by 2050 through active biodiversity
management.
The Group steers its biodiversity actions through a
Biodiversity Leadership Programme to improve
biodiversity at species, habitat and landscape levels.
Progress is monitored with science-based impact
indicators reported on the Group's website.
Biodiversity is an integral part of forest certifications
including protection of valuable ecosystems. Stora
Enso’s target is to maintain a forest certification
coverage level of at least 96% for the Group's own and
leased forest lands. The forest certification coverage
has remained stable and amounted to 99% in 2023
(2022: 99%).
Biodiversity: forest certification coverage
1
Forest certification coverageTarget 96%
2021 2022 2023
80%
85%
90%
95%
100%
1
For definitions, see Calculation of key sustainability figures.
Responsible business practices
Stora Enso reports on the sustainability indicators below on a quarterly basis. For full annual overview of Stora Enso's
sustainability targets and 2023 performance, see storaenso.com.
Key performance indicators (KPIs) 30 Sep 2024 30 Jun 2024 31 Dec 2023 30 Sep 2023 Target
Occupational safety: TRI rate, year-to-date 5.0 5.1 4.7 4.8 4.6 by the end of 2024
Gender balance: % of female managers
among all managers 25% 24% 24% 25% 25% by the end of 2024
Water: total water withdrawal per saleable
tonne (m
3
/tonne)
1 62 61 61 60 Decreasing trend from 2016
baseline (60m
3
/tonne)
Water: process water discharges per saleable
tonne, (m
3
/tonne)
1,2 34 34 35 35 17% reduction by 2030 from
2019 baseline (36m
3
/tonne)
Sustainable sourcing: % of supplier spend
covered by the Supplier Code of Conduct
(SCoC)
2 96% 96% 95% 96% 95% or above
1
Comparative figures restated due to structural changes.
2
Excluding Business Unit Western Europe in Packaging Solutions. For definitions, see
Calculation of key sustainability figures.
At the end of Q3/2024, the Group's TRI rate was 5.0.
Additionally, Stora Enso tracks proactive safety
reporting using a leading indicator known as the
'Safety Engagement Rate' to continuously enhance
safety culture and performance.
Stora Enso promotes a diverse and inclusive working
environment throughout the organisation to enhance
performance, collaboration, and innovation. At the
end of Q3/2024, the share of female managers was
25%, in line with the target set for the end of 2024.
Similarly, the share of female representation among
all employees was 25%, and 30% within the Group
Leadership Team.
Water performance per saleable tonne, measured
over rolling four quarters, has been impacted by
lower production volumes as a steady water flow
needs to be maintained at the water treatment
plants. While water is relatively abundant at the
Group's production sites, water stress may still impact
operations locally and through wider supply chains.
Approximately 96% of water is recycled back into the
environment while only 4% is consumed in production.
Stora Enso continuously works to maintain a high
coverage rate for the Supplier Code of Conduct,
outlining common requirements for all suppliers.
During the third quarter, the coverage rate remained
on target level.
Sustainability
Stora Enso January–September results 2024 19 (42)
===== SIDA 21 =====
ESG ratings and recognitions
ESG rating Stora Enso score / best possible score Rating compared to peers
CDP
Climate A-/A
Forest A/A
Water A-/A
Among the highest ranked in the industry
FTSE Russell 4.4/5 Among the highest ranked in the industry
ISS Corporate Rating B/A+ Among the highest ranked in the industry
ISS QualityScore
Governance 7/1*
Social 1/1*
Environment 2/1*
Above the industry average
MSCI AAA/AAA Among the highest ranked in the industry
Sustainalytics 13.8/0** Among the highest ranked in the industry
VigeoEiris 71/100 Among the highest ranked in the industry
*1 to 10 (1 indicating the best possible score) **0 to 100 (0 indicating the lowest risk)
Short-term risks
Risk is characterised by both threats and
opportunities, which may affect future performance
and the financial results of Stora Enso, reputation, as
well as its ability to meet certain social and
environmental objectives.
The geopolitical unrest could have an adverse
impact on the Group. Retaliatory measures, conflict-
related risks to people, operations, trade credit, cyber
security, supply, and demand, could also affect the
Group negatively.
The risk of a prolonged global economic downturn
and recession, continued high inflation, as well as
sudden interest rate changes, currency fluctuations,
trade union and political strike actions, and logistical
chain disruptions could all adversely affect the
Group’s profits, cash flow and financial position, as
well as access to material, flow of goods and
transport.
Macroeconomic and geopolitical disruption may
increase costs, add complexity, and lower short-term
visibility, which could further impact market demand,
prices, profit margins, and volumes of the Group's
products. New capacity and volume entering the
market might distort demand, volumes, inventories
and pricing. Moreover, forced capacity cuts might
further impact on profitability.
There is a risk of continued price volatility for raw
materials such as wood, chemicals, other
components and energy in Europe. The continued
tight wood market, especially in the Nordics, could
cause increased costs, limit harvesting and cause
disruptions such as delays and/or lack of wood
supply to the Group's production sites. Regulatory or
similar initiatives might challenge the Group's
strategy, growth and operations.
Other risks and uncertainties include, but are not
limited to; general industry conditions, unanticipated
expenditures related to the cost of compliance with
existing and new environmental and other
governmental regulations, and related to actual or
potential litigation; material process disruption at
Stora Enso's manufacturing facilities with operational
or environmental impacts; risks inherent in
conducting business through joint ventures; and
other factors.
Stora Enso has been granted various investment
subsidies and compensations, and has given certain
investment commitments in several countries e.g.,
Finland, China and Sweden. If commitments to
planning conditions are not met, local officials may
pursue administrative measures to reclaim some of
the formerly granted investment subsidies or to
impose penalties on Stora Enso, the outcome of such
a process could result in adverse financial impact on
Stora Enso.
A more detailed risk description is included in Stora
Enso’s Annual Report 2023, available at
storaenso.com/annualreport.
Sensitivity analysis
Energy sensitivity analysis: the direct effect of a 10%
change in electricity and fossil fuel market prices
would have an impact of approximately EUR 6 million
on adjusted EBIT for the next 12 months.
Wood sensitivity analysis: the direct effect of a 10%
change in wood prices would have an impact of
approximately EUR 233 million on adjusted EBIT for the
next 12 months.
Pulp sensitivity analysis: the direct effect of a 10%
change in pulp market prices would have an impact
of approximately EUR 125 million on adjusted EBIT for
the next 12 months.
Chemical and filler sensitivity analysis: the direct
effect of a 10% change in chemical and filler prices
would have an impact of approximately EUR 44 million
on adjusted EBIT for the next 12 months.
Foreign exchange rates transaction risk sensitivity
analysis for the next twelve months: the direct effect
on adjusted EBIT of a 10% strengthening in the value of
the US dollar, Swedish krona and British pound would
Sustainability
Stora Enso January–September results 2024 20 (42)
===== SIDA 22 =====
be approximately positive EUR 88 million, negative EUR
8 million and positive EUR 12 million annual impact,
respectively. Weakening of the currencies would have
the opposite impact. These numbers are net of
hedges and assuming no changes occur other than a
single currency exchange rate movement in an
exposure currency.
The Group's consolidated income statement on
adjusted EBIT level is exposed to a foreign-currency
translation risk worth approximately EUR 179 million
expense exposure in Brazilian real (BRL) and
approximately EUR 67 million income exposure in
Chinese Renminbi (CNY). These exposures arise from
the foreign subsidiaries and joint operations located
in Brazil and China, respectively. For these exposures a
10% strengthening in the value of a foreign currency
would have a negative EUR 18 million and a positive
EUR 7 million impact on adjusted EBIT, respectively.
Legal proceedings
Contingent liabilities
Stora Enso has undertaken significant restructuring
actions in recent years which have included the
divestment of companies, sale of assets and mill
closures. These transactions include a risk of possible
environmental or other obligations the existence of
which would be confirmed only by the occurrence or
non-occurrence of one or more uncertain future
events not wholly within the control of the Group. A
provision has been recognised for obligations for
which the related amount can be estimated reliably
and for which the related future cost is considered to
be at least probable.
Stora Enso is party to legal proceedings that arise in
the ordinary course of business and which primarily
involve claims arising out of commercial law. The
management does not consider that liabilities related
to such proceedings before insurance recoveries, if
any, are likely to be material to the Group’s financial
condition or results of operations.
Veracel
On 11 July 2008, Stora Enso announced that a federal
judge in Brazil had issued a decision claiming that the
permits issued by the State of Bahia for the
operations of Stora Enso’s joint operations company
Veracel were not valid. The judge also ordered
Veracel to take certain actions, including
reforestation with native trees on part of Veracel’s
plantations and a possible fine of, at the time of the
decision, BRL 20 (EUR 4) million. Veracel disputes the
decision and has filed an appeal against it. Veracel
operates in full compliance with all Brazilian laws and
has obtained all the necessary environmental and
operating licences for its industrial and forestry
activities from the relevant authorities. In November
2008, a Federal Court suspended the effects of the
decision. No provisions have been recorded in
Veracel’s or Stora Enso’s accounts for the
reforestation or the possible fine.
Changes in Group management
Pasi Kyckling was appointed acting CFO as of 1
November 2024 until Niclas Rosenlew starts in his
position as the new CFO, at the latest in January 2025.
Shareholders’ Nomination Board
Stora Enso's Shareholders’ Nomination Board was
established in September. The Shareholders’
Nomination Board consists of the following members:
Kari Jordan (Chair of Stora Enso’s Board of Directors),
Håkan Buskhe (Vice Chair of Stora Enso’s Board of
Directors), Jouko Karvinen (Solidium Oy), and Marcus
Wallenberg (FAM AB).
The Shareholders’ Nomination Board elected Marcus
Wallenberg as its Chair.
Resolutions by the Annual General Meeting
Stora Enso Oyj’s Annual General Meeting was held on
20 March 2024 in Helsinki, Finland. The AGM adopted
the accounts for 2023, adopted the remuneration
report for 2023 through an advisory resolution and
granted the Company’s Board of Directors and Chief
Executive Officer discharge from liability for the
period.
Events
Stora Enso January–September results 2024 21 (42)
===== SIDA 23 =====
The AGM resolved, in accordance with the proposal
by the Board of Directors, that the Company shall
distribute a dividend of EUR 0.10 per share for the year
2023. The dividend was paid on 4 April 2024. In
addition, the AGM resolved that the Board of Directors
is authorised to decide at its discretion on the
payment of an additional dividend up to a maximum
of EUR 0.20 per share. The authorisation is valid until 31
December 2024.
The AGM resolved, in accordance with the proposal
by the Shareholders’ Nomination Board, that the
Board of Directors shall have eight (8) members. The
AGM further resolved to re-elect the current members
of the Board of Directors – Håkan Buskhe, Elisabeth
Fleuriot, Helena Hedblom, Astrid Hermann, Kari Jordan,
Christiane Kuehne, and Richard Nilsson – as members
of the Board of Directors until the end of the following
AGM and to elect Reima Rytsölä as a new member of
the Board of Directors for the same term of office. The
AGM resolved to elect Kari Jordan as Chair of the
Board of Directors and Håkan Buskhe as Vice Chair of
the Board of Directors.
The AGM resolved, in accordance with the proposal
by the Shareholders' Nomination Board, that the
annual remuneration for the Board of Directors be
paid as follows:
Chair EUR 215,270 (2023: 209,000)
Vice Chair EUR 121,540 (2023: 118,000)
Members EUR 83,430 (2023: 81,000)
The AGM also resolved that the annual remuneration
for the members of the Board of Directors be paid in
Company shares and cash so that 40% is paid in
Stora Enso R shares.
The AGM resolved the annual remuneration for the
Board committees in accordance with the proposal
by the Shareholders’ Nomination Board.
The AGM resolved to elect PricewaterhouseCoopers
Oy as auditor until the end of the Company's next
AGM. PricewaterhouseCoopers Oy has notified the
Company that Samuli Perälä, APA, will act as the
principally responsible auditor.
PricewaterhouseCoopers Oy will also act as the
sustainability reporting assurance provider of the
Company until the end of the Company’s next AGM.
Resolutions by the organising meeting of the Board
of Directors
Richard Nilsson (Chair), Elisabeth Fleuriot and Astrid
Hermann were elected members of the Financial and
Audit Committee.
Kari Jordan (Chair), Håkan Buskhe and Reima Rytsölä
were elected members of the People and Culture
Committee.
Christiane Kuehne (Chair), Helena Hedblom and
Richard Nilsson were elected members of the
Sustainability and Ethics Committee.
More information about the AGM in 2024 is available
in the release Stora Enso’s Annual General Meeting
and decisions by the Board of Directors.
This report has been prepared in English and Finnish. If there are any variations in the content between the versions,
the English version shall govern. This report is unaudited.
Helsinki, 24 October 2024
Stora Enso Oyj
Board of Directors
Events
Stora Enso January–September results 2024 22 (42)
===== SIDA 24 =====
Financials
Basis of Preparation
This unaudited interim financial report has been
prepared in accordance with the accounting policies
set out in International Accounting Standard 34 on
Interim Financial Reporting and in the Group’s
Financial Report for 2023 with the exception of new
and amended standards applied to the annual
periods beginning on 1 January 2024 and changes in
accounting principles described below.
All figures in this Interim Report have been rounded to
the nearest million, unless otherwise stated. Therefore,
percentages and figures in this report may not add
up precisely to the totals presented and may vary
from previously published financial information.
Acquisition of Group companies
In March 2024 Stora Enso’s 50% owned joint operation
MdP (Montes del Plata, Uruguay) completed
transaction to acquire forest assets and related
forestry business in Uruguay. Stora Enso's share of the
transaction includes approximately 16.3 thousand
hectares of land, of which about 9.8 thousand
hectares are productive land. The acquired units are
fully owned and reported in Biomaterials division.
The acquired forest land and operations are located
in different regions in Uruguay. The acquired
operations mainly include forestry plantations to
supply wood for pulp production.
Stora Enso's share of the cash purchase
consideration was EUR 72 million. The related
transaction costs were not considered to be
significant.
The fair values of the identifiable assets and liabilities
as of the acquisition date consisted mainly of forest
assets (Stora Enso's share EUR 72 million). The amount
of other items were not significant.
The fair values of the acquired assets and liabilities as
at acquisition date have been determined on a
provisional basis pending finalisation of the post-
combination review of the fair values. If new
information obtained within one year of the date of
acquisition about facts and circumstances that
existed at the date of acquisition or any other
adjustment items are identified, the above amounts
are adjusted accordingly and the accounting for the
acquisition will be adjusted. There were no
measurement period adjustments in Q3 2024.
The acquisition is not considered to have significant
impact on Stora Enso Group’s sales or net profit.
Disposal of Group companies
In Q3/2024 Stora Enso completed a transaction for a
unit in Packaging Materials division, specialised in
paper for recycling trading. The transaction did not
have significant impact to the Group. The following
table reflects the net assets of the companies sold in
2024.
EUR million Q1-Q3/24 Q1-Q3/23
Net assets sold
Cash and cash equivalents 1 28
Property, plant and equipment 0 266
Intangible assets 0 60
Working capital 0 -6
Tax assets and liabilities 0 -27
Interest-bearing assets and
liabilities 0 -92
Non-controlling interest 0 0
Net assets in disposed companies 0 230
Total disposal consideration 1 264
Assets held for sale
As announced in December 2022, Stora Enso initiated
a sales process for divesting its Beihai packaging
board production site and forestry operations in
Guangxi, China.
Assets are classified as held for sale, if their carrying
amounts will be recovered mainly through a sale
transaction rather than through continuing use. The
assets must be available for immediate sale in their
present condition subject only to terms that are usual
and customary for the sale of such assets. In addition,
the sale must be highly probable and expected to be
completed within one year after the date of
classification.
Financials
Stora Enso January–September results 2024 23 (42)
===== SIDA 25 =====
These assets and related liabilities are presented
separately in the consolidated statement of financial
position and are measured at the lower of the
carrying amount and fair value less costs to sell.
Comparative information is not restated. Assets
classified as held for sale are not depreciated.
The Beihai operations were classified as held for sale
since Q4/2023 and based on latest evaluation the
divestment is not seen as highly probable anymore.
Stora Enso's view is that the value in own use of the
assets exceeds the achievable transaction value, and
has therefore chosen to retain these operations
within the Group. Therefore, the held for sale
classification was ceased at the end of Q3/2024.
Comparative figures have been restated accordingly,
including recognising depreciations for Q1 and
Q2/2024 which were not recognised during the held
for sale classification. See section Restatements
below for more details.
Assets held for sale included mainly fixed assets,
forest assets, inventories and operating receivables,
whereas related liabilities consisted mainly of non-
current and current interest bearing liabilities and
operating liabilities.
The following new and amended
standards are applied to the annual
periods beginning on 1 January 2024
• Amended standards and interpretations did not
have material effect on the Group.
Future standard changes endorsed by
the EU but not yet effective in 2024
• No future standard changes endorsed by the EU
which would have material effect on the Group.
Stora Enso January–September results 2024 24 (42)
===== SIDA 26 =====
Condensed consolidated income statement
EUR million Q3/24 Q3/23 Q2/24 Q1-Q3/24 Q1-Q3/23 2023
Sales 2,261 2,127 2,301 6,727 7,222 9,396
Other operating income 55 62 66 235 297 378
Change in inventories of finished goods and WIP 50 -75 30 96 -126 -209
Materials and services -1,511 -1,394 -1,491 -4,415 -4,703 -6,133
Freight and sales commissions -212 -195 -219 -634 -685 -883
Personnel expenses -286 -283 -328 -916 -956 -1,275
Other operating expenses -116 -113 -131 -378 -534 -638
Share of results of associated companies 14 15 4 29 54 136
Change in net value of biological assets 11 1 -6 13 5 209
Depreciation, amortisation and impairment charges -126 -145 -133 -385 -570 -1,303
Operating result 139 -1 92 372 4 -322
Net financial items -41 -40 -49 -137 -121 -173
Result before tax 98 -41 43 235 -117 -495
Income tax -14 7 -8 -40 11 64
Net result for the period 84 -34 35 195 -106 -431
Attributable to
Owners of the Parent 88 -33 38 204 -70 -357
Non-controlling interests -4 -1 -3 -9 -36 -74
Net result for the period 84 -34 35 195 -106 -431
Earnings per share
Basic earnings per share, EUR 0.11 -0.04 0.05 0.26 -0.09 -0.45
Diluted earnings per share, EUR 0.11 -0.04 0.05 0.26 -0.09 -0.45
Q2/24 restated, see chapter Restatements for more details.
Consolidated statement of comprehensive income
EUR million Q3/24 Q3/23 Q2/24 Q1-Q3/24 Q1-Q3/23 2023
Net result for the period 84 -34 35 195 -106 -431
Other comprehensive income (OCI)
Items that will not be reclassified to profit and loss
Equity instruments at fair value through OCI 63 -85 -150 -147 -816 -645
Actuarial gains and losses on defined benefit plans -14 3 4 10 19 -52
Revaluation of forest land 0 0 6 6 18 -49
Share of OCI of associated companies 0 0 -5 -5 1 -23
Income tax relating to items that will not be
reclassified 2 -2 -1 -3 -5 22
51 -84 -147 -139 -783 -748
Items that may be reclassified subsequently to
profit and loss
Cumulative translation adjustment (CTA) -54 115 60 -133 -79 56
Net investment hedges and loans 7 8 0 4 -17 -15
Cash flow hedges and cost of hedging 18 -8 6 -14 -43 -1
Share of OCI of Non-controlling Interests (NCI) 1 -2 -1 0 2 5
Income tax relating to items that may be reclassified -6 2 -1 2 10 -1
-34 115 64 -141 -126 44
Total comprehensive income 102 -3 -48 -85 -1,015 -1,135
Attributable to
Owners of the parent 104 0 -44 -76 -982 -1,066
Non-controlling interests -2 -3 -4 -9 -33 -69
Total comprehensive income 102 -3 -48 -85 -1,015 -1,135
CTA = Cumulative translation adjustment
OCI = Other comprehensive income
Q2/24 restated, see chapter Restatements for more details.
Financials
Stora Enso January–September results 2024 25 (42)
===== SIDA 27 =====
Condensed consolidated statement of financial position
EUR million 30 Sep 2024 31 Dec 2023 30 Sep 2023
Assets
Goodwill O 504 505 576
Other intangible assets O 296 304 318
Property, plant and equipment O 5,110 4,854 5,072
Right-of-use assets O 499 521 536
6,410 6,183 6,502
Forest assets O 7,127 7,105 6,722
Biological assets O 4,844 4,836 4,462
Forest land O 2,283 2,269 2,260
Emission rights O 129 108 150
Investments in associated companies O 936 926 865
Listed securities I 9 9 7
Unlisted securities O 660 810 640
Non-current interest-bearing receivables I 24 76 104
Deferred tax assets T 141 134 106
Other non-current assets O 52 59 79
Non-current assets 15,487 15,411 15,175
Inventories O 1,696 1,545 1,652
Tax receivables T 36 31 36
Operating receivables O 1,048 1,239 1,258
Interest-bearing receivables I 121 64 27
Cash and cash equivalents I 1,999 2,464 2,077
Current assets 4,900 5,343 5,051
Assets held for sale 0 0 0
Total assets 20,387 20,754 20,226
Equity and liabilities
Owners of the Parent 10,826 10,985 11,067
Non-controlling Interests -106 -97 -61
Total equity 10,720 10,889 11,007
Post-employment benefit obligations O 202 217 172
Provisions O 83 83 81
Deferred tax liabilities T 1,428 1,433 1,419
Non-current interest-bearing liabilities I 4,090 4,775 4,182
Non-current operating liabilities O 10 11 10
Non-current liabilities 5,813 6,520 5,864
Current portion of non-current debt I 839 347 489
Interest-bearing liabilities I 732 657 640
Bank overdrafts I 21 0 24
Provisions O 61 85 105
Operating liabilities O 2,191 2,211 2,054
Tax liabilities T 10 45 43
Current liabilities 3,855 3,346 3,355
Liabilities related to assets held for sale 0 0 0
Total liabilities 9,667 9,865 9,219
Total equity and liabilities 20,387 20,754 20,226
Items designated with “O” comprise Operating Capital
Items designated with “I” comprise Net debt
Items designated with “T” comprise Net Tax Liabilities
31 Dec 2023 restated, see chapter Restatements for more details.
Financials
Stora Enso January–September results 2024 26 (42)
===== SIDA 28 =====
Condensed consolidated statement of cash flows
EUR million Q1-Q3/24 Q1-Q3/23
Cash flow from operating activities
Operating result 372 4
Adjustments for non-cash items 360 535
Change in net working capital 130 92
Cash flow from operations 863 631
Net financial items paid -115 -75
Income taxes paid, net -70 -99
Net cash provided by operating activities 678 456
Cash flow from investing activities
Acquisition of subsidiary shares and business operations, net of acquired cash -70 -584
Acquisitions of associated companies 0 -2
Acquisitions of unlisted securities 0 -18
Cash flow on disposal of subsidiary shares and business operations, net of disposed cash 0 235
Cash flow on disposal of unlisted securities 3 0
Cash flow on disposal of forest and intangible assets and property, plant and equipment 16 42
Capital expenditure -877 -661
Proceeds from/payment of non-current receivables, net -16 3
Net cash used in investing activities -944 -984
Cash flow from financing activities
Proceeds from issue of new long-term debt 15 1,441
Repayment of long-term debt and lease liabilities -229 -554
Change in short-term interest-bearing liabilities 83 240
Dividends paid -79 -473
Purchase of own shares
1
-3 -6
Net cash provided by financing activities -212 648
Net change in cash and cash equivalents -477 121
Translation adjustment -9 15
Net cash and cash equivalents at the beginning of period 2,464 1,917
Net cash and cash equivalents at period end 1,978 2,053
Cash and cash equivalents at period end 1,999 2,077
Bank overdrafts at period end -21 -24
Net cash and cash equivalents at period end 1,978 2,053
1
Own shares purchased for the Group’s share award programme. The Group did not hold any of its own shares on 30 September 2024.
Financials
Stora Enso January–September results 2024 27 (42)
===== SIDA 29 =====
Statement of changes in equity
Fair value reserve
EUR million
Share
capital
Share
premium
and
reserve
fund
Invested
non-
restricted
equity
fund
Treasury
shares
Equity
instruments
through OCI
Cash
flow
hedges
Revaluation
reserve
OCI of
associated
companies
CTA and
net
investment
hedges
and loans
Retained
earnings
Attributable
to owners of
the parent
Non-
controlling
interests Total
Balance at 1 January 2023 1,342 77 633 — 1,298 39 1,579 87 -415 7,893 12,532 -30 12,502
Net result for the period — — — — — — — — — -70 -70 -36 -106
OCI before tax — — — — -816 -43 18 1 -95 19 -916 2 -913
Income tax relating to OCI — — — — — 8 -4 — 1 -2 4 — 4
Total comprehensive income — — — — -815 -34 14 1 -94 -53 -982 -33 -1,015
Dividend — — — — — — — — — -473 -473 — -473
Acquisitions and disposals — — — — — — — — — — — 2 2
Purchase of treasury shares — — — -6 — — — — — — -6 — -6
Share-based payments — — — 6 — — — — — -10 -4 — -4
Balance at 30 September 2023 1,342 77 633 — 482 5 1,593 88 -510 7,357 11,067 -61 11,007
Net result for the period — — — — — — — — — -287 -287 -38 -325
OCI before tax — — — — 171 41 -67 -24 136 -72 186 2 188
Income tax relating to OCI — — — — — -9 14 — -1 14 17 — 17
Total Comprehensive Income — — — — 170 33 -53 -24 135 -344 -84 -36 -120
Dividend — — — — — — — — — — — — —
Acquisitions and disposals — — — — — — — — — — — — —
Purchase of treasury shares — — — — — — — — — — — — —
Share-based payments — — — — — — — — — 2 2 — 2
Balance at 31 December 2023 1,342 77 633 — 653 38 1,540 63 -375 7,015 10,985 -97 10,889
Net result for the period — — — — — — — — — 204 204 -9 195
OCI before tax — — — — -147 -14 6 -5 -129 10 -279 — -279
Income tax relating to OCI — — — — 0 3 -1 — -1 -2 -2 — -2
Total comprehensive income — — — — -146 -11 4 -5 -130 212 -76 -9 -85
Dividend — — — — — — — — — -79 -79 — -79
Acquisitions and disposals — — — — — — — — — — — — —
Purchase of treasury shares — — — -3 — — — — — — -3 — -3
Share-based payments — — — 3 — — — — — -5 -1 — -1
Balance at 30 September 2024 1,342 77 633 — 506 26 1,544 58 -505 7,144 10,826 -106 10,720
CTA = Cumulative Translation Adjustment OCI = Other Comprehensive Income NCI = Non-controlling Interests
Financials
Stora Enso January–September results 2024 28 (42)
===== SIDA 30 =====
Goodwill, other intangible assets, property, plant and equipment, right-of-use assets and forest assets
EUR million Q1-Q3/24 Q1-Q3/23 2023
Carrying value at 1 January 13,289 12,489 12,489
Additions in tangible and intangible assets 640 557 946
Additions in right-of-use assets 44 96 108
Additions in biological assets 57 50 71
Depletion of capitalised silviculture costs -57 -61 -81
Acquisition of subsidiaries 71 858 859
Disposals and classification as held for sale
1
-10 -16 -15
Depreciation and impairment -385 -570 -1,303
Fair valuation of forest assets 75 84 241
Translation difference and other -188 -262 -27
Statement of Financial Position Total 13,537 13,224 13,289
1
Including company disposals. 2023 restated, see chapter Restatements for more details.
Borrowings
EUR million 30 Sep 2024 30 Sep 2023 31 Dec 2023
Bond loans 3,446 3,136 3,601
Loans from credit institutions 972 1,013 997
Lease liabilities 506 517 520
Long-term derivative financial liabilities 2 3 1
Other non-current liabilities 2 3 2
Non-current interest-bearing liabilities including current portion 4,928 4,671 5,123
Short-term borrowings 666 556 595
Interest payable 58 44 56
Short-term derivative financial liabilities 9 40 6
Bank overdrafts 21 24 0
Total Interest-bearing Liabilities
1
5,682 5,335 5,780
EUR million Q1-Q3/24 Q1-Q3/23 2023
Carrying value at 1 January 5,780 3,972 3,972
Additions in long-term debt, companies acquired 0 131 131
Proceeds of new long-term debt 15 1,441 2,006
Repayment of long-term debt -168 -481 -619
Additions in lease liabilities, companies acquired 0 99 99
Additions in lease liabilities 44 97 109
Repayment of lease liabilities and interest -67 -54 -87
Change in short-term borrowings 69 132 177
Change in interest payable 20 27 45
Change in derivative financial liabilities 3 -6 -41
Disposals and classification as held for sale 0 -8 -8
Other 20 27 26
Translation differences -34 -42 -29
Total Interest-bearing Liabilities
1
5,682 5,335 5,780
1
2023 restated, see chapter Restatements for more details.
Financials
Stora Enso January–September results 2024 29 (42)
===== SIDA 31 =====
Commitments and contingencies
EUR million 30 Sep 2024 31 Dec 2023 30 Sep 2023
On Own Behalf
Guarantees 18 18 18
Other commitments 6 6 4
On Behalf of associated companies
Guarantees 4 5 5
On Behalf of Others
Guarantees 16 16 16
Other commitments 0 0 36
Total 43 44 78
Guarantees 38 38 38
Other commitments 6 6 40
Total 43 44 78
As previously disclosed, Stora Enso has been granted investment subsidies and has given certain investment
commitments in China. There is a risk that the majority owned local Chinese company may be subject to a claim
based on alleged costs resulting from certain uncompleted investment commitments. Given the specific mitigating
circumstances surrounding the investment case as a whole, Stora Enso does not consider it to be probable that this
situation would result in an outflow of economic benefits that would be material to the Group. The Company
continues to monitor the situation as the divestment process proceeds.
Capital commitments
EUR million 30 Sep 2024 31 Dec 2023 30 Sep 2023
Total 374 683 792
The Group’s direct capital expenditure contracts include the Group’s share of direct capital expenditure contracts in
joint operations.
Key exchange rates for the euro
One Euro is Closing Rate Average Rate (Year-to-date)
30 Sep 2024 31 Dec 2023 30 Sep 2024 31 Dec 2023
SEK 11.3000 11.0960 11.4088 11.4728
USD 1.1196 1.1050 1.0870 1.0816
GBP 0.8354 0.8691 0.8514 0.8699
Fair Values of Financial Instruments
The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments by
valuation technique:
• Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities;
• Level 2: other techniques, for which all inputs that have a significant effect on the recorded fair value are
observable, either directly or indirectly;
• Level 3: techniques which use inputs that have a significant effect on the recorded fair values that are not
based on observable market data.
The valuation techniques are described in more detail in the Group’s Financial Report. The instruments carried at
fair value in the following tables are measured at fair value on a recurring basis.
Financials
Stora Enso January–September results 2024 30 (42)
===== SIDA 32 =====
Carrying amounts of financial assets and liabilities by measurement and fair value categories: 30 September
2024
Fair value
Fair value through Total Fair value hierarchy
Amortised through income carrying Fair
EUR million cost OCI statement amount value Level 1 Level 2 Level 3
Financial assets
Listed securities — 9 — 9 9 9 — —
Unlisted securities — 645 15 660 660 — — 660
Non-current interest-bearing receivables 14 10 — 24 24 — 10 —
Derivative assets — 10 — 10 10 — 10 —
Loan receivables 14 — — 14 14 — — —
Trade and other operating receivables 601 96 — 697 697 — 96 —
Current interest-bearing receivables 88 32 1 121 121 — 33 —
Derivative assets — 32 1 33 33 — 33 —
Other short-term receivables 88 — — 88 88 — — —
Cash and cash equivalents 1,999 — — 1,999 1,999 — — —
Total 2,703 792 16 3,511 3,511 9 139 660
Fair value
Fair value through Total Fair value hierarchy
Amortised through income carrying Fair
EUR million cost OCI statement amount value Level 1 Level 2 Level 3
Financial liabilities
Non-current interest-bearing liabilities 4,087 2 — 4,090 4,366 — 2 —
Derivative liabilities — 2 — 2 2 — 2 —
Non-current debt 4,087 — — 4,087 4,364 — — —
Current portion of non-current debt 839 — — 839 839 — — —
Current interest-bearing liabilities 724 6 3 732 732 — 9 —
Derivative liabilities — 6 3 9 9 — 9 —
Current debt 724 — — 724 724 — — —
Trade and other operating payables 1,882 — — 1,882 1,882 — — —
Bank overdrafts 21 — — 21 21 — — —
Total 7,553 8 3 7,564 7,841 — 11 —
In accordance with IFRS, derivatives are classified as fair value through income statement. In the above tables for financial assets and liabilities
the cash flow hedge accounted derivatives are however presented as fair value through OCI, in line with how they are booked for the effective
portion.
Financials
Stora Enso January–September results 2024 31 (42)
===== SIDA 33 =====
Carrying amounts of financial assets and liabilities by measurement and fair value categories: 31 December
2023
Fair value
Fair value through Total Fair value hierarchy
Amortised through income carrying Fair
EUR million cost OCI statement amount value Level 1 Level 2 Level 3
Financial assets
Listed securities — 9 — 9 9 9 — —
Unlisted securities — 794 15 810 810 — — 810
Non-current interest-bearing receivables 62 14 — 76 76 — 15 —
Derivative assets — 14 — 15 15 — 15 —
Loan receivables 62 — — 62 62 — — —
Trade and other operating receivables 882 30 — 912 912 — 30 —
Current interest-bearing receivables 21 39 4 64 64 — 43 —
Derivative assets — 39 4 43 43 — 43 —
Other short-term receivables 21 — — 21 21 — — —
Cash and cash equivalents 2,464 — — 2,464 2,464 — — —
Total
3,428 887 19 4,334 4,334 9 87 810
Fair value
Fair value through Total Fair value hierarchy
Amortised through income carrying Fair
EUR million cost OCI statement amount value Level 1 Level 2 Level 3
Financial liabilities
Non-current interest-bearing liabilities 4,774 1 — 4,775 4,926 — 1 —
Derivative liabilities — 1 — 1 1 — 1 —
Non-current debt 4,774 — — 4,774 4,925 — — —
Current portion of non-current debt 347 — — 347 347 — — —
Current interest-bearing liabilities 651 4 2 657 657 — 6 —
Derivative liabilities — 4 2 6 6 — 6 —
Current debt 651 — — 651 651 — — —
Trade and other operating payables 1,892 — — 1,892 1,892 — — —
Bank overdrafts — — — — — — — —
Total 7,664 6 2 7,672 7,823 — 8 —
31 December 2023 restated, see chapter Restatements for more details.
In accordance with IFRS, derivatives are classified as fair value through income statement. In the above tables for financial assets and liabilities
the cash flow hedge accounted derivatives are however presented as fair value through OCI, in line with how they are booked for the effective
portion.
Reconciliation of level 3 fair value measurement of financial assets and liabilities: 30 September 2024
EUR million Q1-Q3/24 2023 Q1-Q3/23
Financial assets
Opening balance at 1 January 810 1,437 1,437
Reclassifications 0 0 0
Gains/losses recognised in other comprehensive income -147 -646 -814
Additions 0 18 18
Disposals -3 0 0
Closing balance 660 810 640
The Group did not have level 3 financial liabilities as at 30 September 2024.
Level 3 Financial Assets
At period end, Level 3 financial assets included EUR 628 million of Pohjolan Voima Oy (PVO) shares for which the
valuation method is described in more detail in the Annual Report. The valuation decreased by EUR 149 million
versus December 2023, mainly due to lower electricity market prices and higher costs. The valuation is most
sensitive to changes in electricity prices and discount rates. The discount rate of 6.49% used in the valuation model
is determined using the weighted average cost of capital method. A +/- 5% change in the electricity price used in
the DCF would change the valuation by EUR +91 million and -91 million, respectively. A +/- percentage point change
in the discount rate would change the valuation by EUR -115 million and +150 million, respectively.
Financials
Stora Enso January–September results 2024 32 (42)
===== SIDA 34 =====
Stora Enso shares
During the third quarter of 2024, the conversions of
441 A shares into R shares were recorded in the
Finnish trade register.
On 30 September 2024, Stora Enso had 175,880,250 A
shares and 612,739,737 R shares in issue. The company
did not hold its own shares. The total number of Stora
Enso shares in issue was 788,619,987 and the total
number votes at least 237,154,223.
On 15 October 2024, the conversion of 50,979 A shares
into R shares was recorded in the Finnish trade
register.
Trading volume
Helsinki Stockholm
A share R share A share R share
July 56,565 31,455,493 43,801 5,119,505
August 112,043 35,892,217 58,554 4,679,962
September 70,638 31,940,575 48,230 4,558,663
Total 239,246 99,288,285 150,585 14,358,130
Closing price
Helsinki, EUR Stockholm, SEK
A share R share A share R share
July 11.50 11.54 129.00 133.90
August 11.60 11.70 130.50 132.70
September 11.60 11.50 129.50 129.90
Number of shares
Million Q3/24 Q3/23 Q2/24 2023
At period end 788.6 788.6 788.6 788.6
Average 788.6 788.6 788.6 788.6
Average, diluted 789.6 789.8 789.6 789.7
Sales
Sales by segment – total
EUR million Q3/24 Q2/24 Q1/24 2023 Q4/23 Q3/23 Q2/23 Q1/23
Packaging Materials 1,169 1,138 1,100 4,557 1,045 1,057 1,155 1,300
Packaging Solutions 262 254 224 1,077 247 266 288 276
Biomaterials 380 413 374 1,587 375 345 379 488
Wood Products 359 414 349 1,580 341 349 436 454
Forest 695 690 659 2,490 650 534 620 687
Other 37 36 57 964 207 179 213 364
Inter-segment sales -640 -644 -599 -2,859 -691 -603 -717 -848
Total 2,261 2,301 2,164 9,396 2,174 2,127 2,374 2,721
Sales by segment – external
EUR million Q3/24 Q2/24 Q1/24 2023 Q4/23 Q3/23 Q2/23 Q1/23
Packaging Materials 1,094 1,062 1,033 4,362 1,006 1,012 1,103 1,242
Packaging Solutions 259 252 221 1,066 244 264 285 273
Biomaterials 315 326 298 1,363 322 297 321 423
Wood Products 320 373 315 1,453 313 322 400 416
Forest 267 282 278 989 266 218 246 258
Other 7 7 20 162 22 14 18 108
Total 2,261 2,301 2,164 9,396 2,174 2,127 2,374 2,721
Disaggregation of revenue
EUR million Q3/24 Q2/24 Q1/24 2023 Q4/23 Q3/23 Q2/23 Q1/23
Product sales 2,246 2,283 2,154 9,317 2,153 2,109 2,348 2,707
Service sales 16 18 10 79 21 18 25 15
Total 2,261 2,301 2,164 9,396 2,174 2,127 2,374 2,721
Financials
Stora Enso January–September results 2024 33 (42)
===== SIDA 35 =====
Restatement of comparative figures
The Beihai site was classified as assets held for sale
from the end of 2023. As at the end of September
2024, such classification has been ceased, because
the sale is not anymore considered to be highly
probable. Adjusted EBIT and IFRS operating result for
January–June 2024 decreased by EUR 15 million due
to the inclusion of the previously suspended
depreciation into the restated results. In accordance
with IFRS, depreciation has not been booked on the
Beihai assets during their classification as held for
sale. There are no cash flow impacts as a result of the
restatements. The following table illustrates the
restatements.
Key figures - Group Restated As published Change
Q1 2024 Q2 2024 Q1-Q2
2024 Q1 2024 Q2 2024 Q1-Q2
2024 Q1 2024 Q2 2024 Q1-Q2
2024
Adjusted EBIT 149 153 302 156 161 317 -8 -8 -15
Adjusted EBIT margin 6.9 % 6.7 % 6.8 % 7.2 % 7.0 % 7.1 % -0.3 % -0.3 % -0.3 %
Operating result (IFRS) 141 92 232 148 99 247 -8 -8 -15
Result before tax (IFRS) 94 43 137 101 50 152 -8 -8 -15
Net result for the period (IFRS) 77 35 111 84 42 126 -8 -8 -15
Depreciation and impairment charges
excl. IAC 125 126 251 118 118 236 8 8 15
Forest assets 8,625 8,723 8,723 8,626 8,725 8,725 -1 -2 -2
Adjusted return on capital employed
(ROCE), LTM 1.8 % 2.6 % 2.6 % 1.9 % 2.8 % 2.8 % -0.1 % -0.1 % -0.1 %
Adjusted ROCE excl. Forest division, LTM -0.1 % 1.1 % 1.1 % 0.0 % 1.3 % 1.3 % -0.1 % -0.2 % -0.2 %
Earnings per share (EPS) excl. FV, EUR 0.08 0.06 0.14 0.09 0.07 0.16 -0.01 -0.01 -0.02
EPS (basic), EUR 0.10 0.05 0.15 0.11 0.06 0.16 -0.01 -0.01 -0.02
Return on equity (ROE), LTM -4.9 % -2.3 % -2.3 % -4.8 % -2.1 % -2.1 % -0.1 % -0.1 % -0.2 %
Equity per share, EUR 13.65 13.60 13.60 13.66 13.61 13.61 -0.01 -0.02 -0.02
Operating capital, total 15,417 15,362 15,362 15,425 15,377 15,377 -8 -15 -15
Capital employed 14,183 14,115 14,115 14,190 14,131 14,131 -8 -15 -15
Equity attributable to owners of the Parent 10,765 10,722 10,722 10,771 10,734 10,734 -6 -12 -12
Non-controlling interests -100 -103 -103 -98 -100 -100 -1 -3 -3
Net result attributable to owners of the
parent 79 38 117 85 44 129 -6 -6 -12
Net profit for the period attributable to
owners of the parent excl. FV 65 49 114 71 55 126 -6 -6 -12
Adjusted EBIT, LTM 257 374 374 265 389 389 -8 -15 -15
Capital employed, LTM average 14,195 14,104 14,104 14,197 14,108 14,108 -2 -5 -5
Adjusted EBIT excl. Forest division, LTM -9 93 93 -2 108 108 -8 -15 -15
Capital employed excl. Forest division, LTM
average 8,413 8,270 8,270 8,415 8,274 8,274 -2 -5 -5
Net result for the period, LTM -539 -248 -248 -532 -233 -233 -8 -15 -15
Total equity, LTM average 11,045 10,838 10,838 11,047 10,842 10,842 -2 -5 -5
Key figures - Packaging Materials Restated As published Change
Q1 2024 Q2 2024 Q1-Q2
2024 Q1 2024 Q2 2024 Q1-Q2
2024 Q1 2024 Q2 2024 Q1-Q2
2024
Adjusted EBIT 52 53 105 60 60 120 -8 -8 -15
Adjusted EBIT margin 4.8 % 4.6 % 4.7 % 5.5 % 5.3 % 5.4 % -0.7 % -0.7 % -0.7 %
Operating result (IFRS) 47 24 71 55 32 87 -8 -8 -15
Adjusted EBIT, LTM -46 28 28 -38 43 43 -8 -15 -15
Operating capital, LTM 3,565 3,516 3,516 3,566 3,520 3,520 -2 -5 -5
Adjusted ROOC, LTM -1.3 % 0.8 % 0.8 % -1.1 % 1.2 % 1.2 % -0.2 % -0.4 % -0.4 %
The below tables present a restatement of the divisions' cash flows due to an incorrect allocation in the previously
published figures. The Group's figures are unchanged.
Financials
Stora Enso January–September results 2024 34 (42)
===== SIDA 36 =====
Cash Flow from Operations (non-IFRS) Restated As published Change
Q2 2024 Q1-Q2 2024 Q2 2024 Q1-Q2 2024 Q2 2024 Q1-Q2 2024
Packaging Materials 64 223 75 235 -11 -12
Packaging Solutions 24 30 24 30 0 0
Biomaterials 139 269 141 271 -2 -2
Wood Products 32 2 40 10 -8 -8
Forest 116 134 120 137 -4 -3
Other -51 -66 -76 -91 25 25
Group 323 592 323 592 0 0
Cash Flow after Investing Activities (non-
IFRS) Restated As published Change
Q2 2024 Q1-Q2 2024 Q2 2024 Q1-Q2 2024 Q2 2024 Q1-Q2 2024
Packaging Materials -99 -228 -87 -216 -12 -12
Packaging Solutions 14 8 14 8 0 0
Biomaterials 98 185 101 187 -3 -2
Wood Products 26 -22 34 -14 -8 -8
Forest 100 108 104 111 -4 -3
Other -53 -70 -78 -95 25 25
Group 86 -18 86 -18 0 0
Alternative performance measures
Definitions and purpose for alternative performance measures can be found at the end of this section.
Changes in alternative performance measures
From 1 January 2024 onwards, a slight change in
terminology is applied with regards to certain key
alternative performance measures as detailed in the
table below:
Name until 31 Dec 2023 New name from 1 Jan 2024
Operational EBIT Adjusted EBIT
Operational EBIT margin Adjusted EBIT margin
Operational EBITDA Adjusted EBITDA
Operational EBITDA margin Adjusted EBITDA margin
Net debt to LTM operational
EBITDA
Net debt to LTM adjusted
EBITDA
Operational return on capital
employed (op. ROCE)
Adjusted Return on capital
employed (Adj. ROCE)
Operational ROCE excl. Forest
division
Adjusted ROCE excl. Forest
division
Operational return on
operating capital (op. ROOC)
Adjusted Return on operating
capital (Adj. ROOC)
In addition, the Company specifies that in order for
the qualifying cases to be considered as items
affecting comparability, a materiality threshold will be
applied of at least EUR 4 million for Packaging
Materials, EUR 2 million for Biomaterials, and EUR 1
million for the rest of the divisions including the
segment Other. No restatements were prepared for
the alternative performance measures as this
change did not have a significant impact on the
comparative figures.
Reconciliation of operating result
EUR million Q3/24 Q3/23
Change %
Q3/24–
Q3/23 Q2/24
Change %
Q3/24–
Q2/24
Q1-
Q3/24
Q1-
Q3/23
Change %
Q1-Q3/24–
Q1-Q3/23 2023
Adjusted EBITDA 328 180 82.3 % 312 5.1 % 938 777 20.7 % 989
Depreciation and silviculture costs of
associated companies -4 -3 -54.9 % -4 9.3 % -10 -7 -32.6 % -11
Silviculture costs
1
-24 -27 10.5 % -29 17.0 % -75 -77 3.6 % -102
Depreciation and impairment excl. IAC
2
-125 -130 3.9 % -126 0.8 % -376 -401 6.1 % -534
Adjusted EBIT
2
175 21 n/m 153 14.4 % 478 292 63.8 % 342
Fair valuations and non-operational
items 0 5 -93.7 % -16 101.8 % -4 2 n/m 231
Items affecting comparability (IAC) -36 -26 -37.9 % -46 20.9 % -102 -290 64.9 % -895
Operating result (IFRS)
2
139 -1 n/m 92 52.4 % 372 4 n/m -322
1
Including damages to forests
2
Q2/24 restated, see chapter Restatements for more details.
Financials
Stora Enso January–September results 2024 35 (42)
===== SIDA 37 =====
Adjusted EBIT by segment
EUR million Q3/24 Q2/24 Q1/24 2023 Q4/23 Q3/23 Q2/23 Q1/23
Packaging Materials 73 53 52 -57 -43 -34 -22 41
Packaging Solutions -6 -1 -1 43 6 14 15 8
Biomaterials 43 63 57 118 35 5 -13 91
Wood Products -2 7 -9 -64 -27 -21 -6 -11
Forest 81 76 70 253 75 59 62 57
Other -16 -32 -11 1 -1 -15 -9 27
Inter-segment eliminations 3 -13 -10 49 5 13 9 21
Adjusted EBIT 175 153 149 342 51 21 37 234
Fair valuations and non-operational
items 0 -16 11 231 229 5 -14 11
Items affecting comparability -36 -46 -20 -895 -605 -26 -276 12
Operating result (IFRS) 139 92 141 -322 -326 -1 -253 258
Net financial items -41 -49 -47 -173 -52 -40 -51 -29
Result before Tax 98 43 94 -495 -378 -41 -304 228
Income tax expense -14 -8 -17 64 53 7 47 -43
Net result 84 35 77 -431 -325 -34 -257 185
The Packaging Materials and Group figures were restated for Q2/24 and Q1/24. See chapter Restatements for more details.
Items affecting comparability (IAC), fair valuations and non-operational items (FV)
Items affecting comparability in Q3/2024
EUR million Q3/24 Q1-Q3/24
Restructuring - Packaging Materials -9 -30
Restructuring - Packaging Solutions -1 -6
Restructuring - Biomaterials 0 -2
Restructuring - Forest 0 -3
Restructuring - Group functions and
segment Other 2 -3
Profit improvement programme -
consulting costs -14 -32
Closure De Hoop -7 -11
Environmental provisions -5 -5
Other items -2 -9
Total -36 -102
Items affecting comparability in Q3/2023
EUR million Q3/23 Q1-
Q3/23
Impairment reversal - Forest 0 1
Disposal of Nymölla -1 -30
Disposal of Hylte 1 -47
Disposal of Maxau 3 52
Disposal of biocomposite business -14 -14
Disposal of Wood Products DIY unit 0 -3
Disposals related transaction costs 0 -5
Acquisition of De Jong Packaging Group -1 -16
Closure of Sunila pulp mill -13 -117
Closure De Hoop -4 -80
Restructuring (2021 announced) -
Kvarnsveden 4 28
Restructuring (2021 announced) -
Veitsiluoto 1 10
Restructuring - Anjala 0 -26
Restructuring - Packaging Materials -1 -17
Restructuring - Packaging Solutions 0 -10
Restructuring - Biomaterials -2 -2
Restructuring - Wood Products 0 -8
Restructuring - Group functions -1 -11
Environmental provisions - mainly
closed Finnish sites 0 6
Other items 0 -1
Total -26 -290
Fair valuations and non-operational items
EUR million Q3/24 Q1-
Q3/24 Q3/23 Q1-
Q3/23
Non-operational fair valuation changes of biological assets, Packaging Materials -1 -3 0 0
Non-operational fair valuation changes of biological assets, Biomaterials 5 10 -3 1
Non-operational fair valuation changes of biological assets, Forest 0 -11 0 -6
Non-cash income and expenses related to CO2 emission rights and liabilities, Other 5 34 12 15
Non-operational items of associated companies, Forest -9 -33 -5 -3
Adjustments for differences between fair value and acquisition cost of forest assets
upon disposal, Forest -1 -2 0 -5
Total 0 -4 5 2
Results
Stora Enso January–September results 2024 36 (42)
===== SIDA 38 =====
Items affecting comparability (IAC) by segment
EUR million Q3/24 Q2/24 Q1/24 2023 Q4/23 Q3/23 Q2/23 Q1/23
Packaging Materials -10 -27 -4 -597 -474 -4 -98 -21
Packaging Solutions -1 -3 -3 -26 -1 0 -5 -20
Biomaterials -2 -1 -1 -224 -105 -17 -101 0
Wood Products 0 0 0 -22 -13 -1 -8 0
Forest -3 2 -2 2 4 3 -2 -3
Other -20 -17 -10 -28 -16 -6 -61 56
IAC on operating result -36 -46 -20 -895 -605 -26 -276 12
Tax on IAC 5 8 4 100 53 6 43 -3
IAC on net result -31 -38 -16 -795 -552 -20 -233 10
Fair valuations and non-operational items by segment
EUR million Q3/24 Q2/24 Q1/24 2023 Q4/23 Q3/23 Q2/23 Q1/23
Packaging Materials -1 -1 -1 12 12 0 0 0
Packaging Solutions 0 0 0 0 0 0 0 0
Biomaterials 5 3 1 25 24 -3 5 -1
Wood Products 0 0 0 0 0 0 0 0
Forest -9 -29 -6 206 221 -5 0 -9
Other 5 11 17 -13 -28 12 -19 21
FV on operating result 0 -16 11 231 229 5 -14 11
Tax on FV 1 3 -1 -25 -24 -1 4 -3
FV on net result 1 -13 11 206 205 3 -10 8
Operating result by segment
EUR million Q3/24 Q2/24 Q1/24 2023 Q4/23 Q3/23 Q2/23 Q1/23
Packaging Materials 62 24 47 -642 -504 -38 -120 21
Packaging Solutions -8 -4 -4 17 5 14 10 -12
Biomaterials 46 66 58 -81 -46 -15 -109 90
Wood Products -3 7 -10 -86 -40 -22 -14 -11
Forest 69 49 63 461 300 57 60 44
Other -31 -38 -4 -41 -46 -10 -89 104
Inter-segment eliminations 3 -13 -10 49 5 13 9 21
Operating result (IFRS) 139 92 141 -322 -326 -1 -253 258
Net financial items -41 -49 -47 -173 -52 -40 -51 -29
Result before tax 98 43 94 -495 -378 -41 -304 228
Income tax expense -14 -8 -17 64 53 7 47 -43
Net result 84 35 77 -431 -325 -34 -257 185
The Packaging Materials and Group figures were restated for Q2/24 and Q1/24. See chapter Restatements for more details.
Calculation of adjusted return on capital employed (ROCE) and return on equity (ROE) based on the last 12
months
EUR million Q3/24 Q3/23 Q2/24 Q4/23
Adjusted EBIT, LTM
1
528 647 374 342
Capital employed, LTM average
1
14,146 14,336 14,104 14,230
Adjusted ROCE, LTM
1
3.7% 4.5% 2.6% 2.4%
Adjusted EBIT excl. Forest division, LTM
1
225 407 93 89
Capital employed excl. Forest division, LTM average
1
8,220 8,715 8,270 8,490
Adjusted ROCE excl. Forest division, LTM
1
2.7% 4.7% 1.1% 1.0%
Net result for the period, LTM
1
-130 478 -248 -431
Total equity, LTM average
1
10,780 11,727 10,838 11,413
Return on equity (ROE), LTM
1
-1.2% 4.1% -2.3% -3.8%
Net debt 3,528 3,120 3,497 3,167
Adjusted EBITDA, LTM 1,150 1,292 1,002 989
Net debt to LTM adjusted EBITDA ratio 3.1 2.4 3.5 3.2
LTM = Last 12 months.
¹ Q2/24 restated, see chapter Restatements for more details.
Results
Stora Enso January–September results 2024 37 (42)
===== SIDA 39 =====
Calculation of EPS excl. FV
EUR million Q3/24 Q3/23 Q2/24 Q1-Q3/24 Q1-Q3/23 2023
Earnings per share (EPS) excl. FV EUR
Net profit for the period attributable to owners of
the Parent
1 88 -33 38 204 -70 -357
FV on net profit for the period attributable to
owners of the Parent 7 3 -11 10 1 218
Net profit for the period attributable to owners
of the parent excl. FV
1 81 -37 49 195 -72 -575
Average number of shares 789 789 789 789 789 789
Earnings per share (EPS) excl. FV EUR
1
0.10 -0.05 0.06 0.25 -0.09 -0.73
¹ Q2/24 restated, see chapter Restatements for more details.
Calculation of net debt
EUR million 30 Sep 2024 30 Sep 2023 30 Jun 2024 31 Dec 2023
Listed securities 9 7 10 9
Non-current interest-bearing receivables 24 104 27 76
Interest-bearing receivables 121 27 121 64
Cash and cash equivalents 1,999 2,077 2,074 2,464
Interest-bearing assets 2,154 2,216 2,232 2,613
Non-current interest-bearing liabilities 4,090 4,182 4,383 4,775
Current portion of non-current debt 839 489 599 347
Interest-bearing liabilities 732 640 728 657
Bank overdrafts 21 24 19 0
Interest-bearing liabilities held-for-sale 0 0 0 0
Interest-bearing Liabilities 5,682 5,335 5,729 5,780
Net debt 3,528 3,120 3,497 3,167
31 Dec 2023 restated, see chapter Restatements for more details.
Definitions and calculation of alternative performance measures
According to the European Securities and Markets Authority (ESMA) Guidelines, an alternative performance
measure is understood as a financial measure of historical or future financial performance, financial position, or
cash flows, not defined under IFRS. Used together with the IFRS measures, alternative performance measures
provide meaningful supplemental information to the management, investors, analysts and other parties with
regards to the financial development of the business operations.
Operating result (IFRS) Net result for the period excluding income tax and net
financial items (finance costs).
Used in combination with below
measures to determine the
profitability of the Group.
Adjusted EBIT
Operating result (IFRS) excluding items affecting
comparability (IAC) and fair valuations and non-
operational items (FV) of the line-by-line consolidated
entities and Stora Enso’s share of operating result excluding
IAC and FV of its associated companies.
The Group’s key non-IFRS
performance metric, which is
used to evaluate the
performance of operating
segments and, in combination
with below ratios, to steer
allocation of resources to them.
Adjusted EBITDA Operating result (IFRS) excluding silviculture costs and
damage to forests, fixed asset depreciation and
impairment, IACs and FV. The definition includes the
respective items of subsidiaries, joint arrangements and
associated companies.
Used by management to analyse
the business and, from time-to-
time, for short term and long-
term target setting.
Adjusted return on capital
employed (ROCE), LTM
3
(%)
Adjusted EBIT
3
x 100
Capital employed
1 Used for long-term Group
financial targets setting.
Adjusted return on operating
capital (ROOC), LTM
3
(%)
Adjusted EBIT
3
x 100
Operating capital
1 Used for long-term divisional
financial targets setting.
Return on equity, ROE, LTM
3
(%)
Net result for the period x 100
Total equity
1 A measure of the profitability in
relation to equity.
Net debt Interest-bearing liabilities – interest-bearing assets,
marked with “I” in the statement of financial position.
Used for long-term Group
financial targets setting.
Alternative performance
measure
Definition Purpose
Results
Stora Enso January–September results 2024 38 (42)
===== SIDA 40 =====
Net debt/equity ratio Net debt
Equity
2 Used for long-term Group
financial targets setting.
Net debt/last 12 months’
adjusted EBITDA ratio
Net debt
LTM adjusted EBITDA
Used for long-term Group
financial targets setting.
Earnings per share (EPS)
excluding FV Net result for the period excluding fair valuations and non-
operational items after tax divided by the weighted
average number of shares
Stora Enso's dividend policy is to
distribute 50% of earnings per
share (EPS) excluding fair
valuation over the cycle.
Operating capital and
capital employed
Operating capital is comprised of items marked with “O” in
the statement of financial position. Capital employed =
Operating capital – Net tax liabilities. Net tax liabilities are
marked with "T" in the statement of financial position.
Used for long-term Group
financial targets setting.
Items affecting
comparability (IAC)
The most common IAC are significant capital gains and
losses, impairments or impairment reversals, disposal gains
and losses relating to Group companies, provisions for
planned restructurings, environmental provisions, changes
in depreciation due to restructuring and penalties. In order
for qualifying cases to be considered as items affecting
comparability, a materiality threshold will be applied of at
least EUR 4 million for Packaging Materials, EUR 2 million for
Biomaterials, and EUR 1 million for the rest of the divisions
including segment Other.
Represent certain significant
items, identified by the
management, considered not
indicative of the operating
business performance due to
their nature and/or frequency.
Fair valuations and non-
operational items (FV)
Fair valuations and non-operational items include non-
cash income and expenses related to CO2 emission rights
and liabilities, non-operational fair valuation changes of
biological assets, adjustments for differences between fair
value and acquisition cost of forest assets upon disposal
and the Group’s share of income tax and net financial
items of associated companies. Non-operational fair value
changes of biological assets reflect changes made to
valuation assumptions and parameters. The adjustments
for differences between fair value and acquisition cost of
forest assets upon disposal are a result of the fact that the
cumulative non-operational fair valuation changes of
disposed forest assets were included in previous periods in
IFRS operating result (biological assets) and other
comprehensive income (forest land) and are included in
adjusted EBIT only at the disposal date (for non-strategic
forest assets disposals).
Represent adjustments for
certain items considered by the
management less relevant for
understanding operating
business performance. These
adjustments result in differences
in the recognition and
measurement principles
applicable under IFRS.
Operational fair value
change of biological assets
Operational fair value changes of biological assets contain
all other fair value changes (see above about non-
operational fair value changes of biological assets), mainly
due to inflation and differences in actual harvesting levels
compared to the harvesting plan.
The long-term value change of
the growing forests is an
important component of the
forestry business profitability.
Cash flow from operations
(non-IFRS) and cash flow
after investing activities
(non-IFRS)
Cash flow from operations (non-IFRS) is equal to net cash
provided by operating activities (IFRS) before cash flows
related to financial items and income taxes. Cash flow after
investing activities (non-IFRS) is equal to cash flow from
operations (non-IFRS) minus cash spent on intangible
assets, property, plant and equipment, and biological
assets and acquisitions of associated companies.
These are measures of cash
generation, working capital
efficiency and capital
expenditure outflows.
Capital expenditure Capital expenditure on fixed assets includes investments in
and acquisitions of tangible and intangible assets as well
as internally generated assets and capitalised borrowing
costs, net of any related subsidies. Capital expenditure on
leased assets includes new capitalised leasing contracts.
Capital expenditure on biological assets consists of
acquisitions of biological assets and capitalisation of costs
directly linked to growing trees in plantation forests. The
cash flow impact of capital expenditure is presented in
cash flow from investing activities, excluding lease capex,
where the cash flow impact is based on paid lease
liabilities and presented in cash flow from financing and
operating activities.
A measure of the operating
business investments capitalised
as tangible and intangibles
assets.
Fixed costs Maintenance, personnel and other administration type of
costs, excluding IAC and FV.
A measure of the costs that are
less variable in nature.
Alternative performance
measure
Definition Purpose
1
Average for the last five quarter ends
2
Attributable to the owners of the Parent
3
Last 12 months prior to the end of reporting period
Results
Stora Enso January–September results 2024 39 (42)
===== SIDA 41 =====
Definitions and calculation of key sustainability figures
GHG emissions, Scope 1 + 2 Direct absolute CO2e emissions from production (Scope 1) and indirect absolute CO2e
emissions related to purchased electricity and heat (Scope 2). Excluding joint
operations. Reported as rolling 12 months. Calculated in accordance with the
Greenhouse Gas Protocol of the World Resource Institute (WRI).
GHG emissions, Scope 3 Absolute CO2e emissions from other sources along the value chain of all production
units are estimated based on the most recent methodology. Joint operations included
as suppliers. Currently, material emission categories for Scope 3 emissions are updated
annually. Accounting based on guidelines provided by the Greenhouse Gas Protocol
and the World Business Council for Sustainable Development (WBCSD).
Forest certification coverage The proportion of land in wood production and harvesting owned or leased by Stora
Enso that is covered by forest certification schemes. Reporting on total land area and its
forest certification coverage aligned with financial reporting on forests assets.
Share of technically recyclable
products
The proportion of technically recyclable products based on production volumes as
tonnes. Technical recyclability is defined by international standards and tests when
available, and in the absence of these, by Stora Enso’s tests that prove recyclability. The
reporting scope includes Stora Enso’s packaging, pulp, paper and solid wood products
as well as biochemical by-products.
TRI (Total recordable incidents)
rate Number of incidents per one million hours worked. Including joint operations.
Gender balance: % of female
managers among all managers
The share of female managers is calculated as the headcount of all permanent
managers with at least one direct report. The manager must be permanent, but the
subordinates can be temporary or permanent. Reported as rolling 12 months. Excluding
joint operations.
Total water withdrawal per
saleable tonne
Reported as rolling 12 months. Excluding joint operations. Total water withdrawal includes
process water and cooling and non-contact water intakes by board, pulp, and paper
production sites as cubic metres (m
3
).
Process water discharges per
saleable tonne
Reported as rolling 12 months. Excluding joint operations and Business Unit Western
Europe in Packaging Solutions. Process water discharges include the discharges of
board, pulp, and paper production sites as cubic metres (m
3
).
Supplier Code of Conduct (SCoC)
coverage
The share of supplier spend (rolling 12 months) covered by the Supplier Code of Conduct
(SCoC). Excludes contracts with an annual value below EUR 10,000, joint operations,
intellectual property rights, leasing fees, financial trading, government fees such as
customs, and wood purchases from private individual forest owners. Excluding Business
Unit Western Europe in Packaging Solutions.
Results
Stora Enso January–September results 2024 40 (42)
===== SIDA 42 =====
Divisions
Packaging Materials
Leading the development of
circular packaging, providing
premium packaging
materials based on virgin
and recycled fiber.
Share of Group external sales
48%
Packaging Solutions
Developing and selling
premium fiber-based
packaging products and
services.
Share of Group external sales
11%
Biomaterials
Meeting the growing
demand for bio-based
solutions with innovations
and being customers choice
in selected pulp grades.
Share of Group external sales
14%
Wood Products
One of the largest sawn wood producers in
Europe and a global leading provider of
renewable wood-based solutions.
Share of Group external sales
14%
Forest
Creating value through sustainable forest
management, competitive wood supply and
innovation.
Share of Group external sales
12%
Information about Stora Enso's production capacities is available in the Annual Report 2023.
Results
Stora Enso January–September results 2024 41 (42)
===== SIDA 43 =====
Contact information
Stora Enso Oyj Stora Enso AB storaenso.com
P.O.Box 309 P.O.Box 70395 storaenso.com/investors
FI-00101 Helsinki, Finland SE-107 24 Stockholm, Sweden
Visiting address: Katajanokanlaituri 4 Visiting address: World Trade Center
Tel. +358 2046 111 Klarabergsviadukten 70
Tel. +46 1046 46 000
For further information, please contact:
Anna-Lena Åström, SVP Investor Relations, tel. +46 702 107 691
Carl Norell, SVP Corporate Communications, tel. +46 722 410 349
Stora Enso's Q4 and full year 2024 results will be published on
11 February 2025
Part of the global bioeconomy, Stora Enso is a leading provider of renewable products in packaging, biomaterials, and wooden construction, and
one of the largest private forest owners in the world. We create value with our low-carbon and recyclable fiber-based products, through which we
support our customers in meeting the demand for renewable sustainable products. Stora Enso has approximately 20,000 employees and our
sales in 2023 were EUR 9.4 billion. Stora Enso shares are listed on Nasdaq Helsinki Oy (STEAV, STERV) and Nasdaq Stockholm AB (STE A, STE R). In
addition, the shares are traded on OTC Markets (OTCQX) in the USA as ADRs and ordinary shares (SEOAY, SEOFF, SEOJF). storaenso.com/investors
It should be noted that Stora Enso and its business are exposed to various risks and uncertainties and certain statements herein which are not
historical facts, including, without limitation those regarding expectations for market growth and developments; expectations for growth and
profitability; and statements preceded by “believes”, “expects”, “anticipates”, “foresees”, or similar expressions, are forward-looking statements. Since
these statements are based on current plans, estimates and projections, they involve risks and uncertainties, which may cause actual results to
materially differ from those expressed in such forward-looking statements. Such factors include, but are not limited to: (1) operating factors such as
continued success of manufacturing activities and the achievement of efficiencies therein, continued success of product development, acceptance
of new products or services by the Group’s targeted customers, success of the existing and future collaboration arrangements, changes in business
strategy or development plans or targets, changes in the degree of protection created by the Group’s patents and other intellectual property rights,
the availability of capital on acceptable terms; (2) industry conditions, such as strength of product demand, intensity of competition, prevailing and
future global market prices for the Group’s products and the pricing pressures thereto, price fluctuations in raw materials, financial condition of the
customers and the competitors of the Group, the potential introduction of competing products and technologies by competitors; and (3) general
economic conditions, such as rates of economic growth in the Group’s principal geographic markets or fluctuations in exchange and interest rates.
All statements are based on management’s best assumptions and beliefs in light of the information currently available to it and Stora Enso assumes
no obligation to publicly update or revise any forward-looking statement except to the extent legally required.
Contacts
Stora Enso January–September results 2024 42 (42)