STORA ENSO OYJ INVESTOR NEWS 18 December 2024 at 9:00 EET
HELSINKI, Dec. 18, 2024 /PRNewswire/ -- Stora Enso will record non-cash impairments of approximately EUR 724 million in its IFRS operating result in the fourth quarter of 2024. The impairments will be reported as an item affecting comparability (IAC). Including the estimated positive tax effect of EUR 56 million, the net result impact will be approximately EUR 668 million negative.
The impairment charges are allocated between the segments as follows:
EUR million | Goodwill | Non-current assets | Total impairment |
Packaging Materials | 59 | 240 | 299 |
Packaging Solutions | 276 | 93 | 369 |
Wood Products | 6 | 51 | 56 |
Total | 341 | 384 | 724 |
The impairments in the Packaging Materials division mainly relate to the Beihai operations in China, and the division's containerboard operations; in the Packaging Solutions division to the operations in western Europe; and in the Wood Product division to the operations in northern Europe.
The impairments are mainly a consequence of Stora Enso's predictions of weaker long-term (5+ years) cash flow estimates compared to the previous forecasts for these units. The main reasons behind the weaker estimates are lower sales prices, increasing costs and a weaker market supply-demand situation compared to a year ago.
As a result of the impairment booking, the annual depreciation will decrease by approximately EUR 37 million going forward. The impairments do not impact Stora Enso's full-year 2024 adjusted EBIT guidance.
Stora Enso
Part of the global bioeconomy, Stora Enso is a leading provider of renewable products in packaging, biomaterials and wooden construction, and one of the largest private forest owners in the world. Stora Enso has approximately 20,000 employees and our sales in 2023 were EUR 9.4 billion. Stora Enso shares are listed on Nasdaq Helsinki Oy (STEAV, STERV) and Nasdaq Stockholm AB (STE A, STE R). In addition, the shares are traded in OTC Markets (OTCQX) in the USA as ADRs and ordinary shares (SEOAY, SEOFF, SEOJF). storaenso.com/investors
STORA ENSO OYJ
CONTACT:
Investor enquiries:
Anna-Lena Åström
SVP Investor Relations
tel. +46 70 210 7691
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