Holmen AB reported a decline in profit for January-September 2024, driven by lower paper prices and reduced electricity sales compared to the previous year. Operating profit reached SEK 3,005 million, down from SEK 4,041 million during the same period in 2023. Net sales amounted to SEK 17,246 million, slightly below last year’s SEK 17,395 million, amid persistent market challenges.
EBITDA for the period was SEK 4,050 million, compared to SEK 5,055 million a year ago, while profit after tax decreased to SEK 2,304 million from SEK 3,159 million in 2023. The operating margin fell to 17%, from 23% last year.
In the forestry segment, wood prices rose by 15% year-over-year, driving some profit stability despite reduced log harvesting in Q3. The operating margin for Q3 2024 was 34%, compared to 50% in Q3 2023. Operating profit for January-September reached SEK 1,424 million, up from SEK 1,139 million last year, benefiting from higher wood prices .
The renewable energy segment faced significant pressure as electricity prices in northern Sweden fell to a 20-year low, averaging SEK 130/MWh in Q3 2024 compared to SEK 440/MWh a year ago. The segment's operating margin fell to -19% from 43% in Q3 2023, with operating profit dropping to SEK 255 million from SEK 485 million .
In the wood products segment, demand remained weak, leading to slightly lower sales prices and higher log costs. The operating margin was 0% for Q3 2024, down from 2% a year earlier. Operating profit for January-September fell to SEK 20 million from SEK 96 million in 2023 .
The board and paper segment showed resilience with stable paperboard prices, even as demand remained below historical levels. The Q3 2024 operating margin stood at 16%, compared to 19% in Q3 2023. Operating profit for January-September decreased to SEK 1,461 million from SEK 2,470 million, primarily due to lower paper prices and reduced income from electricity sales .
Looking forward, Holmen anticipates gradual recovery driven by potential interest rate cuts, particularly in the construction and energy sectors. While wood prices may continue to support returns, limited raw material availability could constrain growth. Holmen aims to boost long-term returns through investments in wind power and packaging production, although planned maintenance shutdowns in Q4 are expected to have an impact of SEK 250 million on earnings .
CEO Henrik Sjölund commented, "Despite the challenges, we continue to strengthen our positions in board, paper, and renewable energy, establishing a foundation for sustainable growth."
