Metsä Group (METS) Q3 2024 earnings summary

Executive summary

• Q1–Q3 2024 sales totaled EUR 4,273 million, down from EUR 4,624 million year-over-year, reflecting weaker market conditions and operational disruptions.

• Comparable operating result was EUR 170 million (4.0% of sales), compared to EUR 431 million (9.3%) in the prior year period.

• Major negative impacts included political strikes in Finland (EUR 60 million) and a gas explosion at the Kemi bioproduct mill (EUR 100 million).

• Insurance compensation of EUR 67 million for the Kemi mill explosion was recorded in Q3, partially offsetting losses.

• Result before taxes for the period was EUR 119 million (EUR 438 million in 2023).

Financial highlights

• EBITDA for January–September was EUR 492 million (EUR 673 million in 2023), with a margin of 11.6%.

• Return on capital employed dropped to 3.2% from 8.3% year-over-year.

• Equity ratio stood at 56.5% at the end of Q3 2024.

• Interest-bearing net liabilities increased to EUR 1,281 million.

• Total investments for Q1–Q3 2024 were EUR 422 million.

Outlook and guidance

• Comparable operating result for Q4 2024 is expected to be weaker than Q3 2024, excluding further insurance compensation.

• Paperboard delivery volumes are expected to decrease slightly in Q4, with stable sales prices.

• Demand for tissue and greaseproof papers is expected to remain stable, with margin improvement measures ongoing.

• Sawn timber demand and prices anticipated to remain steady.