Latest news with #HansSohlström
Yahoo
28-04-2025
- Business
- Yahoo
Stora Enso reports 9.1% sales increase in Q1 FY25
Stora Enso, a Finnish packaging company, has reported sales of €2.36bn ($2.68bn) in the first quarter (Q1) of fiscal year 2025 (FY25), a 9.1% increase from the same period of the previous fiscal year. In the interim report for the period of January to March 2025, the company attributed this increase primarily to elevated prices and deliveries. The company's adjusted earnings before interest and taxes (EBIT) rose for the fourth consecutive quarter on a year-on-year basis to €175m in Q1 FY25, which is a 17.7% uptick from the €149m posted in the corresponding quarter of the previous year. The adjusted EBIT margin also saw an improvement, climbing to 7.4% in Q1 FY25 compared to 6.9% in Q1 FY24. Higher prices, volumes, and positive impacts from net currency exchange rates and depreciations more than offset higher fibre costs, stated the company. During Q1 FY25, Stora Enso's operating result witnessed an increase of 21.7%, reaching €171m compared to €141m reported in Q1 FY24. The company's pretax result indicates a 40.8% rise to €132m in Q1 FY25 from the €94m in Q1 FY24. The net result for the period grew 40% year-over-year to €107m. The company's basic earnings per share for Q1 FY25 stood at €0.14, up 43.5% from €0.10 reported in the same period of the previous year. Stora Enso president and CEO Hans Sohlström said: 'This improvement primarily resulted from higher prices, alongside increased volumes, favourable foreign exchange rates, and the positive impact of cost-saving and value-creation initiatives, which helped mitigate continued high fibre costs.' Looking ahead, Stora Enso expects its adjusted EBIT for the entirety of FY25 to be adversely affected by around €100m due to the ramping up of its new packaging board line in Oulu, Finland, with a significant portion of this impact anticipated in Q2. For FY25, the group has projected its capital expenditures to be between €730m and €790m. In Q2 FY25, it also anticipates maintenance costs to surpass the first quarter by roughly €20m. Within its Packaging Materials division, Stora Enso predicts a stable containerboard market with ongoing price increments from Q1 to Q2. The demand for consumer board is expected to be seasonally stronger, and output from the company's new consumer packaging board line is set to gradually boost delivery volumes. The Packaging Solutions division, meanwhile, is anticipating heightened demand in Western Europe, driven by the seasonal fruit and vegetable market. Last week, Stora Enso announced plans to reorganise its structure into seven profit and loss accountable business areas, emphasising the significance of its renewable packaging operations. "Stora Enso reports 9.1% sales increase in Q1 FY25" was originally created and published by Packaging Gateway, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
25-04-2025
- Business
- Yahoo
Stora Enso to implement restructure with seven business areas
Finnish packaging company Stora Enso is set to reorganise its structure into seven profit and loss (P&L) accountable business areas, emphasising the significance of its renewable packaging operations. This restructuring aims to enhance customer engagement, operational efficiency by increasing integration and simplifying processes. The new structure will see Stora Enso's renewable packaging segment divided into four P&L responsible areas, namely food service and liquid board, cartonboard, containerboard, and packaging solutions. Generating around 60% of Stora Enso's annual revenue, these sectors will support clients in minimising their ecological footprint while capitalising on sustainability trends, leveraging leading market positions, and fostering innovation. Each business unit will provide a range of renewable, fibre-based packaging solutions, including cartons, boxes, trays, cups, and bags, to various industries. The remaining 40% of Stora Enso's projected annual revenue will be managed by three other P&L accountable divisions: biomaterials, wood products, and forest. Besides their respective businesses, they will contribute to Stora Enso's renewable packaging by supplying essential raw materials through sustainable wood sourcing. Under the new organisation structure, Nordic sawmills and building solutions sites will be operationally linked to the geographically nearest board or pulp production facility to improve operational and supply chain synergies. However, Central European counterparts will stay under the Wood Products division and maintain the company's global sales and customer service network. The planned organisational changes include removing a layer of management and further decentralising P&L responsibility to align more closely with customer needs and operational activities. Consequently, Stora Enso will have seven P&L accountable business areas encompassing a total of 21 P&L units. Stora Enso president and CEO Hans Sohlström said: "Our planned new organisation has been carefully structured to maximise customer and business focus, operational efficiency and synergies, ensure the benefits of supply chain integration, and ultimately reflect our performance and results-oriented culture.' The company appointed Markku Luoto to lead the Food Service and Liquid Board, Andreas Birmoser for Cartonboard, and Hannu Kasurinen for Containerboard. Luoto and Birmoser are set to join the group leadership team as executive vice presidents on 1 July 2025. Other divisions such as packaging solutions, biomaterials, wood products, and forest will retain their current leadership with Carolyn Wagner, Johanna Hagelberg, Lars Völkel, and Tuomas Hallenberg at the helm, respectively. The implementation of the new structure is scheduled for 1 July 2025. This transition is contingent upon co-determination negotiations and compliance with legal requirements in all affected countries. Last month, Stora Enso began the production ramp-up of its new consumer packaging board line at the Oulu site in Finland. "Stora Enso to implement restructure with seven business areas" was originally created and published by Packaging Gateway, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
25-04-2025
- Business
- Yahoo
Stora Enso to implement restructure with seven business areas
Finnish packaging company Stora Enso is set to reorganise its structure into seven profit and loss (P&L) accountable business areas, emphasising the significance of its renewable packaging operations. This restructuring aims to enhance customer engagement, operational efficiency by increasing integration and simplifying processes. The new structure will see Stora Enso's renewable packaging segment divided into four P&L responsible areas, namely food service and liquid board, cartonboard, containerboard, and packaging solutions. Generating around 60% of Stora Enso's annual revenue, these sectors will support clients in minimising their ecological footprint while capitalising on sustainability trends, leveraging leading market positions, and fostering innovation. Each business unit will provide a range of renewable, fibre-based packaging solutions, including cartons, boxes, trays, cups, and bags, to various industries. The remaining 40% of Stora Enso's projected annual revenue will be managed by three other P&L accountable divisions: biomaterials, wood products, and forest. Besides their respective businesses, they will contribute to Stora Enso's renewable packaging by supplying essential raw materials through sustainable wood sourcing. Under the new organisation structure, Nordic sawmills and building solutions sites will be operationally linked to the geographically nearest board or pulp production facility to improve operational and supply chain synergies. However, Central European counterparts will stay under the Wood Products division and maintain the company's global sales and customer service network. The planned organisational changes include removing a layer of management and further decentralising P&L responsibility to align more closely with customer needs and operational activities. Consequently, Stora Enso will have seven P&L accountable business areas encompassing a total of 21 P&L units. Stora Enso president and CEO Hans Sohlström said: "Our planned new organisation has been carefully structured to maximise customer and business focus, operational efficiency and synergies, ensure the benefits of supply chain integration, and ultimately reflect our performance and results-oriented culture.' The company appointed Markku Luoto to lead the Food Service and Liquid Board, Andreas Birmoser for Cartonboard, and Hannu Kasurinen for Containerboard. Luoto and Birmoser are set to join the group leadership team as executive vice presidents on 1 July 2025. Other divisions such as packaging solutions, biomaterials, wood products, and forest will retain their current leadership with Carolyn Wagner, Johanna Hagelberg, Lars Völkel, and Tuomas Hallenberg at the helm, respectively. The implementation of the new structure is scheduled for 1 July 2025. This transition is contingent upon co-determination negotiations and compliance with legal requirements in all affected countries. Last month, Stora Enso began the production ramp-up of its new consumer packaging board line at the Oulu site in Finland. "Stora Enso to implement restructure with seven business areas" was originally created and published by Packaging Gateway, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Reuters
25-04-2025
- Business
- Reuters
Stora Enso tops profit forecast, eyes 'new opportunities' amid trade war
April 25 (Reuters) - Finnish forestry group Stora Enso's ( opens new tab first-quarter operating profit beat market expectations on Friday, even as it warned that market demand would remain subdued amid concerns triggered by U.S. President Donald Trump's tariffs. CEO Hans Sohlström said the direct impact at current tariff rates was limited, as Stora's direct sales to the U.S. accounted for just below 3% of group sales in 2024. Local peer UPM ( opens new tab on Thursday also warned of an indirect tariff hit while saying the direct impact should be limited, despite its much bigger exposure to the United States. Sohlström underscored that in addition to the risks, there were also opportunities arising from tariffs to develop Stora's sales into new markets, without specifying which regions he was referring to. "The key here is ... to reposition, but also to renegotiate prices in the U.S. to compensate for tariffs in the U.S., but at the same time also to grasp new opportunities in new markets," he told Reuters in an interview. The company's adjusted operating profit, or earnings before interest and taxes, rose to 175 million euros ($198.42 million)in the first quarter, trouncing analysts' 124.9 million euro forecast in a poll, opens new tab by Vara Research. Its shares were up 1% at 0905 GMT, while UPM ( opens new tab fell 1%. "The clearest outperformance against our forecasts came from Packaging Materials, Packaging Solutions and Wood Products in terms of turnover," Inderes analyst Antti Viljakainen said in a research note. Stora also said it expected the ramp-up of its new packaging board line in Oulu, Finland to have a negative impact of about 100 million euros on its annual adjusted operating profit, and forecast capital expenditures of 730-790 million euros for 2025. ($1 = 0.8820 euros)
