Svenska Cellulosa SCA AB

Latest Results (22.12.2024):

Net Sales Decline

Svenska Cellulosa SCA AB reported a decrease in net sales for the year ending December 2023, with figures dropping to SEK 18,081 million from SEK 20,794 million in the previous year. This decline was primarily due to lower selling prices, despite an increase in delivery volumes resulting from strategic capital expenditures at their mills.

EBITDA and Margin

The company's EBITDA for the year was SEK 6,807 million, down from SEK 10,194 million in 2022. The EBITDA margin also decreased to 37.6% from 49.0%. The reduction in EBITDA was mainly due to lower selling prices, although the company benefited from increased renewable energy results and higher harvesting of its own forest.

Operating Profit and Cash Flow

Operating profit for Svenska Cellulosa SCA AB fell to SEK 4,857 million from SEK 8,642 million in the previous year. Operating cash flow also saw a decline, reaching SEK 2,985 million compared to SEK 5,685 million in 2022. These decreases were influenced by the challenging economic environment and lower selling prices.

Earnings Per Share and Dividend Proposal

Earnings per share for the year were SEK 5.23, a decrease from SEK 9.61 in 2022. Despite the lower earnings, the Board of Directors proposed a dividend of SEK 2.75 per share, up from SEK 2.50 per share in the previous year, reflecting confidence in the company's long-term strategy and financial health.

Fourth Quarter Highlights

In the fourth quarter of 2023, Svenska Cellulosa SCA AB's net sales amounted to SEK 4,384 million, a decrease from SEK 4,873 million in the same period of 2022. However, compared to the third quarter of 2023, net sales increased due to higher delivery volumes of kraftliner and solid-wood products. EBITDA for the quarter was SEK 1,635 million, with an EBITDA margin of 37.3%.