Metsä Group (METS) Q4 2024 earnings summary

Executive summary

• 2024 was financially weak, with sales at EUR 5,747 million, down from EUR 6,110 million in 2023, and comparable operating result at EUR 203 million, significantly lower than EUR 488 million last year, due to weak demand and higher costs except in tissue, greaseproof papers, and Kerto LVL.

• Major events included the inauguration of the Kemi bioproduct mill, closure decisions for Suolahti plywood mills, and significant insurance compensation related to the Kemi mill gas explosion.

• Net cash flow from operations dropped sharply to EUR 11 million from EUR 926 million.

• The Board proposes a profit distribution of approximately EUR 93 million, with reduced interest rates on participation shares compared to the previous year.

• Strikes, high wood costs, and an explosion at Kemi impacted results.

Financial highlights

• Sales for 2024 were EUR 5,747 million, a decrease from EUR 6,110 million in 2023.

• Comparable operating result was EUR 203 million (3.5% of sales), down from EUR 488 million (8.0%).

• Return on capital employed dropped to 2.9% from 7.2%; return on equity was 1.9% (6.8% in 2023).

• Equity ratio remained stable at 56.2%; net gearing increased to 22.2% from 11.7%.

• Interest-bearing net liabilities increased to EUR 1,236 million from EUR 663 million; total investments for the year were EUR 603 million.

Outlook and guidance

• Comparable operating result for Q1 2025 is expected to improve compared to Q4 2024.

• Construction sector recovery is not expected in Q1 2025; demand for Kerto LVL remains good.

• Global demand for softwood pulp and tissue/greaseproof papers expected to remain stable; paperboard delivery volumes to grow slightly.