Scanty Paper Volumes Impacted Stora Enso's EBIT in Q4

SEATTLE (Scrap Monster): Stora Enso reported results for Q4 and full-year 2020. The results were impacted by notable dip in paper volumes.

The Q4 sales recorded decline by 11% from the previous year to total Euro 2,154 million. The sales had totalled Euro 2,411 million during the corresponding quarter a year before. The mix and lower prices, especially in the Paper and Forest divisions, impacted the sales. The topline was further impacted by declining by-product sales. The drop in sales was also on account of divestment and closures of Oulu, Kitee and Pfarrkirchem mills and closure of paper machine at Imatra Mill.

The operational EBIT during the quarter has declined by 5% from the prior year to Euro 118 million. The operational EBIT margin surged to 5.5%.

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The sales during the full year 2020 stood at Euro 8,553 million, lower by nearly 15% from the prior year. The operational EBIT for 2020, at Euro 650 million, was down significantly by over 35%, primarily on account of lower sales prices and lower volumes across all segments. Stora Enso reported operational EBIT margin of 7.6%.  

Commenting on the results, Annica Bresky, President and CEO, Stora Enso noted that the company delivered steady results in line with Q4 2019, despite ongoing volatility in market. The sequential improvement in sales during the quarter is an indication that the markets are moving in the right direction, she added.