Holmen AB

HOLM A

Equity

ISIN SE0011090000 / Valor 41359973

NASDAQ Nordic Exchange Stockholm, Equities (2025-03-14)

SEK 424.00+0.47%

Holmen AB
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About company

Holmen AB is a company that focuses on refining wood, the only completely renewable construction material, in modern sawmills located close to their forest holdings in Sweden. They produce sawn and refined wood products for various industries, as well as offer customised solutions for climate-smart, large-scale building in wood. Additionally, Holmen produces premium paperboard and innovative paper products for a wide range of applications. Their business is centered around the forest ecocycle and the renewable products they can create from it, with business areas including Forest, Wood Products, Board and Paper, and Renewable Energy. With a workforce of 3,500 people, Holmen generates sales of around SEK 24 billion and is listed on Nasdaq Stockholm, Large Cap.

Summarized from source with an LLMView SourceSector: Non-Energy Materials

Strong Earnings Performance

In the third quarter of 2024, Holmen AB reported solid earnings despite a slow economic cycle. The company's operating profit, excluding items affecting comparability, reached SEK 1,078 million, showcasing resilience in challenging market conditions. This performance was primarily driven by strong results in the Board and Paper segments.

Board and Paper Segment Success

Holmen AB's Board and Paper segment demonstrated robust performance in Q3 2024, with strong deliveries and production levels. The segment benefited from seasonally low costs for personnel and maintenance, contributing to a significant operating profit of SEK 1,231 million. This success highlights the segment's ability to navigate market challenges effectively.

Dividend and Share Buy-back Strategy

Holmen AB maintained a strategic focus on shareholder returns, with dividends and share buy-backs amounting to SEK 6 billion from 2023 to 2024. This approach underscores the company's commitment to delivering value to its shareholders while managing its capital efficiently.

Renewable Energy Challenges

In the Renewable Energy segment, Holmen AB faced historically low Swedish power prices during Q3 2024, which impacted profitability. The price levels were insufficient to cover depreciation, resulting in an operating profit of SEK 68 million. Despite these challenges, the company continues to focus on long-term growth in renewable energy.

Wood Products Segment Pressures

The Wood Products segment experienced pressures due to a slow construction cycle and lower selling prices in Q3 2024. Higher log costs further impacted profitability, leading to an operating loss of SEK 26 million. Holmen AB is addressing these challenges by optimizing operations and exploring new market opportunities.

Summarized from source with an LLMView Source

Key figures

1.44%1Y

-18.3%3Y

30.1%5Y

Performance

18.0%1Y

24.3%3Y

28.7%5Y

Volatility