STORA ENSO Higher Deliveries, Price Growth Ramp Up Q2 Revenue

Author: Akanksha | July 21, 2021 07:45am

STORA ENSO (OTC: SEOAY) reported second-quarter sales growth of 22.6% year-over-year to €2.59 billion, reflecting higher deliveries and prices.
The company reported adjusted earnings per share of €0.27, compared to €0.13 for 2Q20.
The Operational EBITDA for the quarter increased by 56.7% Y/Y to €524 million. Operational EBIT margin increased to 14% from 8.4% a year ago.
Operating profit decreased by 19.5% Y/Y to €182 million, and margin fell by 370 bps to 7%.
The company generated cash from operations of €463 million compared to €363 million in 2Q20.
The company’s net debt to operational EBITDA ratio was 1.8 compared to 2.5 a year ago.
Stora Enso plans to divest its Sachsen paper mill in Germany to Model Group.
The company partnered with Tetra Pak to provide circular solutions to the market to significantly improve the recycling of beverage cartons in Central and Eastern Europe.
Outlook: The company expects operational EBIT in 2021 to be higher than operational EBIT in 2020. The total negative impact on operational EBIT is estimated to be €20–25 million for 2021.
Price action: SEOAY shares closed higher by 2.44% at $18.72 on Tuesday.