Stora Enso reports mixed second quarter results in Europe

Finland's Stora Enso Group, one of the world's largest paper and packaging producers, has reported mixed results for its European operations in the second quarter of 2024.

The group's total sales fell by 31Q3Q3 compared to the same period last year to €2.301bn. However, adjusted EBIT increased significantly from €37m in Q2 2023 to €161m in Q2 2024.

In Europe, the Packaging Materials division saw increased demand for both consumer packaging board and containerboard. Sales remained relatively stable despite the closure of some production facilities in 2023.

The Packaging Solutions division reported a 12% decline in sales in Europe, due to margin pressure and unfavorable weather conditions affecting key fresh produce segments in the Benelux.

For Wood Products, European demand for wood products was slightly stronger compared to Q2 2023, but prices remained lower. Weak construction activity continues to affect demand for laminated wood products.

Looking ahead, Stora Enso expects a gradual market recovery in Europe for the remainder of 2024. The company anticipates that demand for packaging board will remain stable, while demand for wood products will be weaker during the holiday season.

However, Stora Enso warns that market uncertainties, including high inflation, potential strikes and fluctuations in demand and prices, are likely to persist until the end of the year.

In the United Kingdom, Stora Enso notes that a 10% appreciation of the pound sterling would have a positive impact of approximately €12 million on adjusted EBIT for the next 12 months.

Stora Enso is a global provider of renewable solutions in packaging, biomaterials and timber construction. With around 20,000 employees and sales of €9.4 billion in 2023, the company is one of the world's largest private forest owners. Stora Enso focuses on developing products and services based on wood, fiber, biomass and other renewable materials.