Stora Enso'a 2Q 2020 sales decreased by 19%, or Euro 494 million, from the previous year to Euro 2 114 million, negatively impacted by the Covid-19 pandemic. Sales prices were lower for most grades despite active mix management and a slightly positive foreign exchange rate impact. Volumes were also clearly lower in all other divisions except Packaging Materials, because the Covid-19 pandemic reduced demand, accelerated structural decline of paper demand and created uncertainty. The divestments and closures at the Dawang paper mill in China, and at the Kitee and Pfarrkirchen sawmills in Finland and Germany, as well as a small paper machine closure at Imatra Mills in Finland further reduced sales.
2Q 2020 operating profit (IFRS) was Euro 226 million.
Operational EBIT decreased by 41%, or Euro 121 million, from the previous year to Euro 178 million. The operational EBIT margin decreased to 8.4%.
Lower sales prices decreased operational EBIT by Euro 156 million. Total volume impact decreased operational EBIT by Euro 100 million, mainly due to the accelerated structural decline in paper demand. Production was curtailed due to Covid-19 pandemic.
Stora Enso’s President and CEO Annica Bresky comments on the 2Q 2020 results: “We delivered an operational EBIT of Euro 178 million, about the same as in the 1Q this year (Euro 180 million). Operational EBIT excluding Paper was Euro 216 million, much stronger than during the 1Q (Euro 159 million). Cash flow from operations was Euro 363 million. We consider the 2Q result solid in the current circumstances. This was driven by strong performances in the Packaging Materials and Forest divisions, and Wood Products division delivering a better result than expected. The pandemic's biggest effect on our business has been in the Paper division, accelerating the structural decline in all paper grades. Excluding Paper, our operational EBIT margin stayed at 13%, showing the resilience of our growth businesses.”
Stora Enso is a leading global provider of renewable solutions in packaging, biomaterials, wooden constructions and paper.
