Stora Enso Q2 2023 – poor results reflect industry situation

Stora Enso has released its figures for Q2 2023. In its report, the company outlined some significant closures and changes, including the closure of the De Hoop containerboard mill it acquired in 2022.

Sales were €2,374m, down 22.3% on the same period last year (3,054). Operational EBIT was €37m, down 93% (505). For the half year 2023, sales were €5,095m (5,852). Operational EBIT was €271m (1,008).

Annica Bresky, President and CEO, comments, The weak market demand further worsened in the second quarter. Our businesses are directly impacted by inflation and the consumers’ cost-of-living crisis, the drop in construction activity and customers continuing to reduce their inventories. Unfortunately, we see no imminent signs of improved market demand and we expect destocking to persist for most of our segments also in the second half of 2023. In this turbulent market we must adapt. We continue to focus on what we can impact and control: investing and restructuring to improve our future business profitability, cost-competitiveness and asset footprint, controlling our costs, and curtailing production to manage our own and customer inventories.”

The headwinds in the first quarter of weak demand across most of the Group’s segments and customer destocking, continue. Based on the current macroeconomic and market specific challenges, Stora Enso assumes continued weakness in demand and volumes, especially in its Packaging Materials, Wood Products and Biomaterials divisions, with no obvious signs of recovery yet.

The full report can be found here.

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