Interim reports | Stora Enso’s net sales collapsed even worse than expected, the operating profit decreased by 96 percent

Stora Enson the result was weaker than expected in early autumn. The collapse in turnover exceeded even analysts’ forecasts. The net sales for July–September shrank by as much as 28 percent from the corresponding period last year to 2,127 million euros.

The operative profit was 21 million euros, i.e. just a little on the positive side. At the same time a year ago, the operating profit was 527 million euros. The operative business result thus weakened by 96 percent.

There is no promise of improvement at least before next spring. The biggest difficulties are in Packaging Materials, which makes cardboard, and the wood products unit.

The general decrease in consumption has weakened the demand for cardboard and is putting pressure on product prices. The direct recession in construction in Europe has collapsed the demand for wooden elements and other timber.

“Stora Enson the market outlook will continue to be sluggish until the end of 2023 and the beginning of 2024. The company’s result is weighed down by weak growth and high inflation worldwide,” the release states.

However, many production cost items have started to decline. The price of energy has decreased. According to the company, the price of wood is still high. There is a slight pick-up in the price of pulp and pulp stocks are decreasing.

The company’s board reacted to the drastic deterioration of the market by appointing the CEO in mid-September To Annica Bresky rare rude kicks. A Finn who was a member of the board immediately started as the new CEO Hans Sohlström.

Sohlström has set the mood right away. On Tuesday, the company announced that a Dutchman has been appointed to lead the packaging solutions division Ad Smith. He managed De Jong Packaging Group, which Stora Enso bought at the turn of last year.

The news is updated.