Holmen reported operating profit stood at SEK 4,041 million in January-September 2023, a decrease from SEK 5,905 million year ago. Excluding the item affecting comparability from the previous year, the decline was attributed to challenging market conditions for wood products and paperboard.
In a detailed breakdown, the third quarter saw a positive upturn with operating profit increasing by SEK 28 million to SEK 1,166 million. The operating margin reached 22%, up from 20% in the previous quarter. However, the profit after tax for January-September amounted to SEK 3,159 million, down from SEK 4,606 million in the same period last year.
The company notes a slowdown in European economic growth as central banks battle inflation. The demand for logs remained high, while pulpwood experienced a decrease in demand due to production curtailments in the industry. Prices for forest raw materials climbed higher in the Nordics, contributing to a slight increase in profit from forests to SEK 397 million.
However, consumer restraint and destocking impacted the demand for consumer paperboard, reflecting in a weak profit of SEK 111 million for the quarter. The company expressed confidence in the long-term security of raw material supplies, emphasizing the company's strong position in the wood market.
The report highlighted challenges in the paper market, with weak demand putting pressure on prices. Nevertheless, Holmen maintained a good level of profit from paper, amounting to SEK 613 million, attributed to favorable cost situations and increased deliveries.
Holmen also addressed the construction market, noting a strong interest in large-scale wood building as an alternative to concrete and steel. The introduction of the Carbon Border Adjustment Mechanism (CBAM) by the EU was mentioned as a factor that could enhance the advantages of building in wood.
In the energy sector, the report indicated stabilization but with higher prices post the energy crisis. The profit from energy in the third quarter was SEK 68 million, influenced by heavy rainfall in Sweden. The company emphasized its commitment to developing renewable energy sources, including hydro power and wind power.
