UPM 1Q 2022 sales were Euro 2,507 million, 12% higher than the Euro 2,234 million in 1Q 2021. Comparable EBIT was line with last year at Euro 277 million, which was 11% of sales.
Operating profit was Euro 183 million, compared to Euro 279 million in the 1Q 2021. Items affecting comparability in operating profit totaled Euro -94 million in the period.
Profit for 1Q 2022 was Euro 139 million, and comparable profit was Euro 232 million. Operating cash flow was Euro 12 million, compared to Euro 217 million in the 1Q 2021.
Jussi Pesonen, President and CEO, said: “Market demand was strong and UPM businesses performed well. We delivered good Q1 results, on par with the corresponding quarter of last year. Prices increased significantly in all our businesses, more than offsetting the rise in variable costs. The result is a good achievement when viewed against the background of the strikes that took place at most of our Finnish mills and the war in Ukraine. Net debt at the end of March was Euro 837 million. Cash funds and unused committed credit facilities totalled Euro 2.9 billion. Our strong liquidity and balance sheet are a great strength considering our ongoing transformative growth investments and the unpredictability of the operating environment.”
Due to the significant uncertainties related to operations in Russia and Ukraine, UPM has recognised a write off of all assets and receivables locating or relating operations in these countries in Q1 2022. Impairment of fixed assets, inventories and other receivables amounting to Euro 95 million was reported as items affecting comparability. In addition, the group increased the general provision for expected credit losses on trade receivables by Euro 17 million that is impacting comparable EBIT.
UPM leads the forest-based bioindustry into a sustainable, innovation-driven, and exciting future across six business areas: UPM Fibres, UPM Energy, UPM Raflatac, UPM Specialty Papers, UPM Communication Papers and UPM Plywood.
