The IFRS fair valuations of Stora Enso’s forest have increased significantly since the publication of the Group’s 3Q results in October.
The forest fair value impact in the balance sheet was a positive Euro 777 million pre-tax at end of 2019. Part of the fair valuation increase has not been recognised in operating profit but as an adjustment to opening balances of purchased Swedish forest assets and liabilities.
Fair valuations and non-operational items had a positive net impact of Euro 600 million on Stora Enso’s IFRS operating profit in the fourth quarter of 2019. The impact came mainly from the forest fair valuation increase in forests owned by Stora Enso in Sweden (Euro 499 million). This was mainly driven by lower discount rates, due to decreasing market interest rates, and updates to other valuation parameters. This increase is excluded from the Operational EBIT.
Stora Enso is a leading global provider of renewable solutions in packaging, biomaterials, wooden constructions and paper.
The IFRS fair valuations of Stora Enso’s forest have increased significantly since the publication of the Group’s 3Q results in October.
