Billerud (BILL) Q3 2024 earnings summary

Executive summary

• Achieved 9% organic and currency-neutral sales growth and 6% net sales growth year-over-year, with strong profit recovery in Europe and another excellent quarter in North America.

• Profitability improved significantly versus both the previous year and previous quarter, with Europe reaching its best profitability in over two years and North America maintaining strong results.

• Efficiency enhancement program contributed SEK 220 million in Q3 and SEK 610 million year-to-date, nearing the SEK 700 million full-year target.

• Price and mix improvements offset cost inflation, but net profit declined 14% year-over-year to SEK 565 million due to higher input costs and tax normalization.

Financial highlights

• Q3 2024 net sales reached SEK 10,798 million, up 6% year-over-year; adjusted EBITDA rose 33% to SEK 1,555 million with a 14% margin.

• EBIT increased 105% year-over-year to SEK 851 million; EPS at SEK 2.27, up 808% from Q2 2024 but down 14% year-over-year.

• Operating cash flow before capex was SEK 438 million, down 60% year-over-year due to working capital build-up.

• North America delivered an 18% EBITDA margin, with volumes up 14% year-over-year and 7% sequentially; Europe achieved a 16% EBITDA margin.

Outlook and guidance

• Q4 2024 expected to see softer demand and price pressure in Europe, especially in board and packaging paper, while North America remains stable.

• Input costs anticipated to increase in Q4, particularly for pulpwood and energy in the Nordics.

• Volumes in both regions expected to decline by 10–20 thousand tons in Q4 compared to Q3.

• CapEx guidance for 2024 remains at SEK 2.3 billion.