Stora Enso OYJ ( (SEOAY) ) has released its Q1 earnings. Here is a breakdown of the information Stora Enso OYJ presented to its investors.
Stora Enso OYJ, a leading provider of renewable solutions in packaging, biomaterials, wooden constructions, and paper, has reported its first-quarter results for 2025, showcasing significant progress in financial performance and strategic initiatives. The company operates primarily in the forestry and packaging industry, focusing on sustainable and innovative solutions.
The first quarter of 2025 saw Stora Enso achieve a 9% increase in sales, reaching EUR 2,362 million, driven by higher prices and increased deliveries. The adjusted EBIT rose to EUR 175 million, marking an 18% year-on-year increase, with an EBIT margin of 7.4%. This improvement was supported by favorable currency exchange rates and effective cost-saving measures. The company also reported a significant rise in earnings per share to EUR 0.14 from EUR 0.10 in the previous year.
Key highlights from the quarter include the ramp-up of the new consumer packaging board line at the Oulu site in Finland, expected to reach full capacity by 2027. Stora Enso also received regulatory approval for the acquisition of Finnish sawmill company Junnikkala Oy, which is anticipated to enhance its wood supply chain. The company announced plans to restructure its organization to focus more on renewable packaging, expanding its business areas from five to seven.
Looking ahead, Stora Enso anticipates continued market volatility due to macroeconomic and geopolitical uncertainties. The company expects its adjusted EBIT for the full year to be impacted by the ramp-up costs of the new packaging board line. However, it remains committed to enhancing operational efficiency and customer focus through organizational restructuring and strategic investments.
Overall, Stora Enso’s first-quarter results reflect a positive trajectory in financial performance and strategic alignment with its core business of renewable packaging, positioning the company for future growth in a challenging market environment.