Interim reports | UPM's profitability is still strong, even though the recession is hurting the industry

Forest giant In January–March, UPM again achieved good results and profitability, even though the market conditions in the forest industry have been very challenging.

The company's turnover fell by only five percent from the same time last year to 2,640 million euros, while for example Stora Enso's turnover fell by 20 percent.

UPM's comparable operating profit was 333 million euros, or 12.6 percent in relation to turnover. Profitability has thus remained good despite the recession in the industry and has clearly improved from last year's numbers.

The analyst forecast compiled by the financial data service Refinitiv predicted a turnover of 2,614 million euros and an operating profit of 264 million euros. The company clearly exceeded both forecasts.

of UPM success in a difficult market explains successful choices in product selection and investments. The company opened a large new pulp mill in Uruguay last year. The factory produces short-fiber pulp from eucalyptus grown on its own plantations at low costs.

Recently, the company has also made good results with electricity production. It has significant hydropower assets in Finland. It also owns a large part of the electricity produced by the Olkiluoto nuclear power plant.

The company is also a large sticker manufacturer and paper producer. Even the constantly shrinking printing paper production has been made to pay off well with Reynaudo's teachings.

“The destocking that characterized last year was over in all businesses, and most businesses improved their results from the previous quarter. The result also shows the positive effect of our significant growth investments UPM Paso de los Toros and OL3”, CEO Massimo Reynaudo says in the announcement.

The news is updated.