SCA's net sales amounted to SEK 13,697 million ($1.2 billion) in January–September 2023, a change of -14%, of which price/mix accounted for -22%, currency +6% and volume +2%. The decline was mainly related to lower selling prices, which was partly offset by positive exchange rate effects and higher delivery volumes.
EBITDA decreased to SEK 5,172 million ($464 million), corresponding to an EBITDA margin of 37.8%. The change was mainly attributable to lower selling prices. Higher earnings for the Forest segment, growth in renewable energy and exchange rate effects had a positive earnings effect. The cost of planned maintenance stops was SEK 230 million ($20.6 million).
Operating profit amounted to SEK 3,738 million ($335 million) in January–September 2023. Depreciation increased to SEK 1,434 million ($129 million) due to commissioned strategic capital expenditures.
Q3 2023 results
Q3 2023 net sales declined to SEK 4,302 million ($386 million), a change of -14%, of which price/mix accounted for -30%, volume +9% and currency +7%. The change was mainly attributable to lower selling prices. Higher delivery volumes and exchange rate effects had a positive effect on net sales.
Q3 2023 EBITDA amounted to SEK 1,417 million ($127 million), corresponding to an EBITDA margin of 32.9%. Lower selling prices were offset by effective cost control due to the high rate of selfsufficiency in primarly wood raw material but also energy and logistics. The cost of planned maintenance stops amounted to SEK 115 million ($10.3 million).
Operating profit amounted to SEK 913 million ($82 million) in Q3 2023.
Due to the high rate of self-sufficiency in wood raw material, energy, and logistics, SCA generated good profitability and strong operating cash flow during the Q3 2023, despite lower selling prices and higher costs for wood raw material. The new paper machine in Obbola and the new CTMP facility at the Ortviken site contributed to higher delivery volumes.
The supply of wood raw material to SCA’s industries was stable during the quarter. The price of pulpwood continued to rise while the price of sawlogs was stable compared with the preceding quarter.
Selling prices for solid-wood products decreased compared with the preceding quarter due to lower demand in most customer segments and regions.
Demand in the Pulp segment was weak for both northern bleached softwood kraft pulp (NBSK) and chemi-thermomechanical pulp (CTMP), which resulted in lower selling prices in all regions.
Low demand for packaging material contributed to continued weak demand for kraftliner and selling prices were in line with the preceding quarter.
SCA is Europe's largest private forest owner with 2.7 million hectares and, with its forest holdings at its core, has developed a well-invested industrial operation with sawmills, pulp mills, and manufacturing of packaging paper.
