Strong market performance and ongoing advancement emerged from Stora Enso Q1 2025 results during uncertain times. Increased sales at the company amounted to 9% mainly because of higher prices combined with increased delivery quantities. This report contains vital information which outlines the following major points:
Key Results Overview
- Sales: EUR 2.36 billion, up 9% from EUR 2.16 billion in Q1/24.
- The Q1 performance showed an increase of adjusted EBIT to EUR 175 million which marked an 18% growth over previous year results.
- Adjusted EBIT margin: 7.4%, up from 6.9% in Q1/24.
The earnings per share reached EUR 0.14 during this period providing a 43.5% increase over the previous year.
Significant Developments
The establishment of the new Consumer Packaging Board Line at Oulu Finland started its production activities during March of 2025. The new board line at Oulu, Finland requires the company to achieve breakeven by 2025 before it reaches maximum operational capability in 2027.
Government authorities gave their green light to Junnikkala Oy’s acquisition after approving the Finnish sawmill company’s takeover. The acquisition process aims to finish execution during early May of 2025.
The business will implement a new streamlined organizational structure operative from July 1 2025 which places renewable packaging at its core business segment. These changes will eliminate excessive management levels while distributing authority more directly that increases operational performance.
The strategic nature of the company’s forest assets drove Forest Asset Value to reach EUR 9.3 billion.
Focus for 2025 and Outlook
The organization predicts that market demand will remain volatile because economic instability together with political conflicts will lead to lower clientele requests.
The combination of increased fiber expenses together with startup production of new packaging units will create a negative impact on adjusted EBIT totaling approximately EUR 100 million.
The company plans to allocate EUR 730-790 million for capital expenses to enhance both operational capabilities and efficiency during the entire year.
Strategy Moving Forward
- The organizational restructuring exists to create lean operations and deliver better customer service for better profitability.
- The company dedicates itself to investing in renewable packaging through its four primary areas of Food Service and Liquid Board and Cartonboard then Containerboard lastly Packaging Solutions.
- Stora Enso embraces challenging market conditions through strategic initiatives which combine business restructuring with customer-oriented operations to safeguard its long-term success.
The challenging market environment of Stora Enso Q1 2025 demonstrates both resilience and strategic investments as well as organizational changes that will drive its future success.