Holmen's FY 2020 net sales decreased to SEK 16,327 million ($1.9 billion), compared to SEK 16,959 million ($2 billion) in 2019.
Operating profit for 2020 was SEK 2,479 million ($299 million). Lower production costs in Paperboard and higher wood product prices had a positive impact on earnings, though this effect was offset by price decreases and production curtailments in Paper.
Profit after tax in 2020 was SEK 1,979 million ($238 million), which corresponds to earnings per share of SEK 12.2 ($1.5). Profit after tax for the previous year was impacted by items affecting comparability of SEK 6,943 million ($836 million).
Henrik Sjölund, President and CEO said: “Although COVID-19 influenced our lives during much of the year, profit for 2020 was good, SEK 2,479 million ($299 million). Higher production efficiency in Paperboard and price increases for wood products offset the weak paper market. Despite a major planned maintenance shutdown, the year ended on a strong note with an operating profit of SEK 595 million ($72 million) in the 4Q.
Despite the pandemic, consumption of paperboard for consumer packaging increased somewhat during the year and prices were stable. The annual maintenance shutdown at Iggesund Mill went well and profit for the 4Q landed at a good level, SEK 165 million ($20 million), thanks to production stability and a good product mix. The aim is to gradually increase sales to the most demanding packaging customers as we improve efficiency in paperboard production.”
Holmen is a forest industry group that manufactures paperboard, paper and wood products and runs forestry and energy production operations.