Stora Enso raises its guidance for the full year 2024 adjusted EBIT (Inside information)

Rhea-AI Summary

Stora Enso has revised its full-year 2024 adjusted EBIT guidance, expecting it to exceed the previous estimate significantly, now forecasting a 50% or higher increase compared to 2023's EUR 342 million. This change is driven by successful profit improvement measures and favorable market conditions, particularly in consumer board and pulp demand. However, challenges persist in the Wood Products and Packaging Solutions divisions. The company warns of ongoing market uncertainties like high inflation and potential external disruptions. Stora Enso will publish its Half-year Report on 24 July 2024.

Positive

• Revised EBIT guidance for 2024 is now 50% or higher than 2023's EUR 342 million.
• Successful implementation of profit improvement actions.
• Increased demand and improved pricing in consumer board and pulp sectors.
• Internal forecasts for 2024 revised to higher levels due to better market conditions.

Negative

• Continued challenging market conditions in Wood Products and Packaging Solutions divisions.
• Persistent market uncertainties including high inflation, strikes, and external disruptions.

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STORA ENSO OYJ INSIDE INFORMATION 15 May 2024 at 11:00 EEST

HELSINKI, May 15, 2024 /PRNewswire/ -- Stora Enso estimates that the previous full year 2024 adjusted EBIT guidance will be exceeded, thanks to successful implementation of profit improvement actions and more favourable market conditions. The Company has therefore revised its full year 2024 adjusted EBIT guidance to be significantly higher (+50% and above) than the full year 2023 of EUR 342 million. The previous guidance for the full year 2024 was the adjusted EBIT to be higher (more than +15%, but less than +50%) than full year 2023.

In the outlook comment in its Q1 2024 report, published on 25 April, Stora Enso stated that it anticipates a gradual recovery in market conditions in 2024, with increased demand for consumer board, higher pulp demand and prices. These market trends are continuing with improved volume and pricing. The Group's profit improvement actions are becoming visible in the result development. Consequently, Stora Enso has revised its internal forecasts for the full year 2024 to a higher level than previously estimated.

The outlook has improved due to increasing orderbooks and volumes for consumer board, as well as improved pricing outlook for the container board and consumer board businesses. Pulp prices continue to increase, and the outlook for the rest of this year is stronger than previously estimated. Challenging market conditions still continue in the Wood Products and Packaging Solutions divisions.

Market uncertainties such as a continued high inflationary environment, strikes, demand and price development, and other external disruptions which may impact the Group's profits, are still expected to persist towards the end of 2024.

Stora Enso Oyj will publish its Half-year Report for January–June 2024 on Wednesday 24 July 2024 at approximately 8:30 EEST (7:30 CEST).

Part of the global bioeconomy, Stora Enso is a leading provider of renewable products in packaging, biomaterials and wooden construction, and one of the largest private forest owners in the world. Stora Enso has approximately 20,000 employees and our sales in 2023 were EUR 9.4 billion. Stora Enso shares are listed on (NASDAQ: STEAV)  (HELSINKI OY: STERV) and (STOCKHOLM AB: STE A), (STOCKHOLM AB: STE R). In addition, the shares are traded in OTC Markets (OTCQX) in the USA as ADRs and ordinary shares (SEOAY), (SEOFF), (SEOJF). storaenso.com/investors 

STORA ENSO OYJ

For further information, please contact:

Carl Norell
SVP Corporate Communications
tel. +46 72 241 0349 

Investor enquiries:
Anna-Lena Åström
SVP Investor Relations
tel. +46 70 210 7691

This information was brought to you by Cision http://news.cision.com.

https://news.cision.com/stora-enso-oyj/r/stora-enso-raises-its-guidance-for-the-full-year-2024-adjusted-ebit--inside-information-,c3981758

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SOURCE Stora Enso Oyj

FAQ

What is Stora Enso's updated EBIT guidance for 2024?

Stora Enso now expects its full-year 2024 adjusted EBIT to be 50% or higher than the 2023 figure of EUR 342 million.

What factors led Stora Enso to revise its EBIT guidance for 2024?

The revision is due to successful profit improvement actions and favorable market conditions, especially in consumer board demand and pulp prices.

What are the main challenges Stora Enso is facing in 2024?

Stora Enso faces challenges in the Wood Products and Packaging Solutions divisions, and market uncertainties including high inflation and potential external disruptions.

When will Stora Enso release its Half-year Report for 2024?

Stora Enso will publish its Half-year Report for January–June 2024 on 24 July 2024.

What is the stock symbol for Stora Enso's ADRs traded in the USA?

The stock symbol for Stora Enso's ADRs traded in the USA is SEOAY.