Stora Enso has recently updated its strategy and certain financial targets, to support the Group’s focus on growth and value creation. The updated strategy and financial targets were presented in Stora Enso’s Capital Markets Day online. The presentations covered the Group’s focus areas for growth, market growth drivers, the recent forest fair value change and new selective capital allocation.
“We have renewed our strategy and long-term financial targets, shaping our business for accelerated growth and value. In line with this, we continue to create value in the bioeconomy with our renewable products, solving global sustainability challenges. We focus on meeting consumer demand for eco-friendly and circular solutions and we concentrate our efforts in innovation,” says Annica Bresky, Stora Enso President and CEO.
Stora Enso presented its areas for growth, which included: focusing on leading positions and accelerated growth in packaging, building solutions and their biomaterials innovation programme. Their innovation initiatives will be concentrated in the areas of new sustainable packaging materials, sustainable barriers and the biochemical platform in lignin. Their forest, traditional wood products and market pulp continue to make up the foundation for value creation in the company.
Stora Enso’s capital expenditure is expected to be in the range of €675-725m in 2021. The Group will be allocating capital expenditure selectively to the focus areas for growth.
Stora Enso has revised its long-term financial targets. There are new Group level targets for growth and return on capital employed (ROCE). The divisional targets for Packaging Solutions and Forest will also change. Also, dividend policy is updated to distribute 50% of EPS excluding fair valuation over the cycle. Other targets remain unchanged.