Metsä Group's sales in FY 2019 totalled Euro 5,473.4 million, compared to Euro 5,709.1 million in 2018. Sales declined due to pulp prices and paperboard delivery volumes, both lower than in the year before, as the company said in the press release received by Lesprom Network.
The comparable operating result declined by 42% from the previous year and was Euro 494.9 million, or 9% of sales. The decrease in the operating result was mainly due to raw material and production costs, which were higher than in the comparison period, and the decline of sales prices of pulp. Metsä Group’s FY 2019 operating result (IFRS) was Euro 374.3 million.
Sales in the 4Q 2019 totalled Euro 1,290.3 million, whereas sales of the corresponding period in the previous year were Euro 1,419 million. The comparable operating result was Euro 76.4 million.
4Q 2019 operating result was Euro 32 million. Comparable operating result was Euro 76 million.
President and CEO Ilkka Hämälä said: “The decline in pulp prices which began in the 4Q 2018 continued throughout 2019 and led to a significant decrease in the level of Metsä Group’s result compared to 2018. The demand for and prices of mechanical forest industry products, such as sawn timber as well as plywood and LVL, were likewise low. The Group’s folding boxboard and white kraftliner business remained on a good level, in line with expectations..
The factors driving long-term demand and growth in all product categories are not expected to change. Consumer demand is expected to grow, particularly in developing markets, and the potential of products made from renewable materials, such as wood, for replacing fossil-based materials is good in all market areas. The further improvement of ecological sustainability will become increasingly important in the development of the entire value chain, from forests to consumers.”
Metsä Group is a forerunner in sustainable bioeconomy utilising renewable wood from sustainably managed northern forests. Metsä Group focuses on wood supply and forest services, wood products, pulp, fresh fibre paperboards and tissue and greaseproof papers.
