Nordic Paper (NPAPER) Q4 2024 earnings summary

Executive summary

• Net sales for Q4 2024 rose 17% year-over-year to SEK 1,134 million, with full-year sales up 4% to SEK 4,668 million, driven by strong Natural Greaseproof segment performance.

• EBITDA for Q4 increased 12% to SEK 189 million, margin 16.7% (down from 17.5% last year); full-year EBITDA reached SEK 806 million, margin stable at 17.3%.

• Profit for Q4 was SEK 114 million (up 76% year-over-year), and full-year profit was SEK 465 million, with EPS of SEK 6.96.

• Dividend policy was removed during the period; no dividend proposal yet for 2024.

• Strategic Value Partners, via Coniferous Bidco AB, acquired a controlling stake, leading to a new board and financing agreements.

Financial highlights

• Q4 net sales: SEK 1,134 million (+17% year-over-year); EBITDA: SEK 189 million (+12%); margin 16.7%.

• Full-year net sales: SEK 4,668 million (+4%); EBITDA: SEK 806 million (+4%); margin 17.3%.

• Net debt increased to SEK 1,197 million; net debt/EBITDA ratio at 1.5.

• Working capital increased to SEK 571 million due to higher inventories at year-end.

• Cash flow from operating activities in Q4: SEK 50 million (down from SEK 198 million); full-year: SEK 333 million.

Outlook and guidance

• Q1 2025 demand expected to remain stable, with strong Natural Greaseproof demand and softer Kraft Paper market.

• Downward pressure on sales prices anticipated in both segments; raw material prices expected to be stable.

• New European regulation banning PFAS in greaseproof papers from 2026 is expected to benefit the Natural Greaseproof segment.