SCA (SCA) Q3 2024 earnings summary

Executive summary

• Q3 2024 saw a 22% increase in net sales to SEK 5,248m and a 42% rise in EBITDA to SEK 2,010m, driven by higher prices, delivery volumes, and increased harvesting from own forests, supporting cost control.

• Strategic investments in Obbola, Ortviken, Gothenburg, Containerboard, and Pulp have been finalized or are ramping up, expected to contribute positively.

• High self-sufficiency in raw material supply, energy, and logistics enabled cost control amid rising input costs.

Financial highlights

• Q3 2024: Net sales SEK 5,248m (+22% y/y), EBITDA SEK 2,010m (+42% y/y), EBITDA margin 38.3%, EBIT margin 28.1%, net profit SEK 1,070m (+61% y/y), EPS SEK 1.52.

• Operating cash flow for Q3 was SEK 708m; for Jan–Sep, SEK 1,911m.

• Net debt/EBITDA at 1.6x; net debt SEK 11,595m; equity SEK 104,899m as of Sep 30, 2024.

Outlook and guidance

• Prices for solid wood products expected to remain unchanged in Q4 due to balanced stock levels and rising raw material costs.

• Pulp prices peaked in summer but have since declined; Chinese market shows signs of recovery.

• Renewable Energy segment faces continued low refining margins and biopremiums, with long-term outlook positive but short-term market weak.

• No significant release in working capital expected in Q4 if prices remain stable.