Stora Enso, a manufacturer of pulp, paper and other forest products, headquartered in Helsinki, Finland, has released its financial statement for the year 2022. The company said it delivered the best full-year financial performance in 22 years despite market challenges in Q4.
In Q4 of 2022, sales increased by 5% to 2,864 million Euros from 2,719 million Euros year-on-year. Sales excluding paper increased by 5%. The operational EBIT decreased to 355 million Euros from 426 million). Operational EBIT excluding paper decreased to 306 million Euros from 436 million. Operational EBIT margin decreased to 12.4% and operating profit decreased to 705 million Euros from 839 million.’
But in the year 2022 as a whole, sales stood at 11,680 million Euros, up from 10,164 million Euros year on year. Sales excluding paper increased by 17%. Operational EBIT was 1,891 million Euros, up from 1,528 million. Operational EBIT excluding paper increased to 1,706 million Euros, up from 1,653 million.
Key highlights of the year were the acquisition of the Dutch De Jong Packaging Group, which was completed in January 2023. Stora Enso also announced plans to divest its consumer packaging site and forestry operations in Beihai, China.
Stora Enso’s full-year 2023 operational EBIT is, however, expected to be lower than for the full-year 2022. Stora Enso says it remains vigilant against persisting market disruptions and uncertainties, macroeconomic environment and inflationary pressures. Stora Enso enters the new year with market softness and variable cost pressures, which are expected to be more challenging in 2023 than in 2022 weighing on our results this year.
The high macroeconomic uncertainty and continued weak consumer confidence resulting in lower private consumption will continue to impact negatively, especially on containerboard demand. Lower demand in the construction sector remains challenging and is expected to especially impact on the demand for traditional sawn wood. Compared to 2022, Group margins are expected to be squeezed by increasing costs, particularly in relation to energy, wood, chemicals and logistics.
Stora Enso’s president and CEO Annica Bresky, commenting on the fourth quarter 2022 results, said: “After what has been an exceptional year in many ways, we have delivered against our financial guidance for 2022 despite a disruptive, highly inflationary, and challenging environment. We have completed significant strategic projects, while making good progress to invest in strategic assets and innovation for growth in renewable packaging, sustainable building solutions and biomaterials innovations. Our performance in 2022 demonstrates the strength of our leading market positions and our ability to be proactive and agile in making necessary adjustments for a new reality both short and long term.”