Stora Enso released their 4Q sales for 2015. Compared to Q4/2014, the sales decreased by 2.5%, reaching EUR 2.487 million. Sales, excluding the structurally declining paper business and divested Corenso and Barcelona mill, increased 5.4%, primarily due to the Montes del Plata pulp mill and Varkaus Mill kraftliner volumes.
Due to strong performance in Biomaterials, lower variable costs, and favorable FX, the operational EBIT increased 15.8% to EUR 242 million, compared to the EUR 209 million reached in Q4/2014. Also, the cash flow from operations amounted to EUR 412 million, 30 million lower than the same period last year.
Compared to Q3/2015, sales remained unchanged, excluding the structurally declining paper business and the divested Barcelona Mill, which increased 2.2%. Since the Q3, the operational EBIT decreased in the Q4 with EUR 4 million, due to seasonally increased fixed costs, lower hardwood pulp prices, and unfavorable FX.
“Stora Enso has shown its ability to transform into a renewable materials growth company. In the fourth quarter, sales excluding the structurally declining paper business and divestments increased 5.4%. This was mainly driven by the Montes del Plata pulp mill and kraftliner from Varkaus Mill. We also continued to generate strong cash flow during the quarter,” said Karl-Henrik Sundström, Stora Enso’s CEO.
For the full year 2015, the sales amounted 10.040 million, decreasing 1.7% compared with 2014. The operational EBIT reached 915 million, increasing by 13.0%, mainly due to strong performance in Biomaterials, favorable FX, and lower variable costs. The cash flow was strong, amounting to EUR 1.556 million, compared to the 1.139 million in 2014. Thus, the Board of Directors proposes dividend to increase from EUR 0.30 to EUR 0.33.
At the moment, Stora Enso proceeds with its Varkaus mill, as full production is expected in early 2017. Also, the Beihai consumer board mill in China is expected to be operational in the Q2 of 2016.
Q1/2016 sales are estimated to be similar to the amount of EUR 2 487 million and operational EBIT is expected to be in line with the EUR 242 million recorded in Q4/2015. There are no major scheduled annual maintenance shutdowns during Q1/2016.
[gravityform id="1" title="true" description="true"]
[gravityform id="2" title="true" description="true"]
