HELSINKI, Oct. 16, 2024 /PRNewswire/ -- UPM lowers its outlook for 2024 and releases its preliminary Q3 2024 results. During the second half of the year, UPM's earnings have improved, however less than earlier expected. Comparable EBIT in Q3 2024 increased by 32% to EUR 291 million from Q3 2023, and 17% for the first nine months compared to last year. Comparable EBIT in Q4 2024 is expected to be on similar level or increase from Q4 2023 (EUR 323 million). Therefore, UPM's comparable EBIT in full-year 2024 is expected to be on similar level or increase from 2023.

During the second half of the year, market demand for UPM's products has been weaker than expected, leading to lower delivery volumes in most businesses.

On the positive side, the new UPM Paso de los Toros pulp mill has operated in full production since its first maintenance shutdown in June. However, the weakened pulp market and the high wood cost in Finland had a negative impact on the UPM Fibres business.

Earlier, UPM expected its full-year 2024 comparable EBIT to increase from 2023, and its H2 2024 comparable EBIT to be higher than in H1 2024. See the full previous outlook text below for reference.

UPM releases its preliminary results for Q3 2024. Sales decreased by 2% to EUR 2,521 million (2,584 million in Q3 2023). Comparable EBIT in Q3 2024 increased by 32% to EUR 291 million, 11,5% of sales (220 million, 8,5%).

UPM will release its Interim Report Q3 2024 on 29 October 2024.


     
              Sales (EURm)         Q3/2024 Q2/2024  Q3/2023   Q1-Q3/2024    Q1-Q3/2023     2023



     UPM Fibres                          943      922       817         2,727          2,263     3,044



     UPM Energy                          125      130       142           465            435       628



     UPM Raflatac                        374      397       367         1,181          1,118     1,485



     UPM Specialty Papers                335      367       357         1,099          1,111     1,485



     UPM Communication Papers            751      711       807         2,265          2,799     3,598



     UPM Plywood                         103      120        96           321            331       422



     Other operations                    141      172       251           466            610       802



     Internal sales                     -252     -272      -251          -816           -735    -1,000


      Eliminations and reconciliation       0       -1        -1            -2             -2        -3



     
              Sales, total           2,521    2,546     2,584         7,707          7,929    10,460

                   Comparable EBIT (EURm) Q3/2024 Q2/2024  Q3/2023   Q1-Q3/2024    Q1-Q3/2023     2023



     UPM Fibres                              190       99       -18           397             92       116



     UPM Energy                               22       16        30           124            139       182



     UPM Raflatac                             24       39        33           112             78       103


      UPM Specialty Papers                     22       41        37           114             46        98


      UPM Communication Papers                 51       35        96           165            262       462



     UPM Plywood                               9       16         9            35             49        56



     Other operations                        -23      -55        26          -114              0       -14


      Eliminations and
       reconciliation                          -4       -8         7           -28             24         8


                   Comparable EBIT, total     291      182       220           806            689     1,013



     % of sales                             11.5      7.2       8.5          10.5            8.7       9.7

Previous outlook for 2024 for reference:

UPM's full-year 2024 comparable EBIT is expected to increase from 2023, supported by higher delivery volumes, the ramp-up and optimisation of the UPM Paso de los Toros pulp mill, and lower fixed costs. Demand for many UPM products is expected to gradually improve as the destocking seen in 2023 is over. The market conditions for renewable fuels are expected to be weaker than last year. UPM continues to manage margins and take actions to reduce variable and fixed costs.

In H2 2024, comparable EBIT is expected to be higher than in H1 2024. This improvement is expected to come especially from UPM Fibres, with the full pulp capacity available and pulp price levels starting at a higher level than at the start of the year. There are no major maintenance shutdowns scheduled for the company in H2 2024, whereas H1 2024 was impacted by unusually high maintenance activity and political strikes in Finland. The timing of the annual energy-related refunds is expected to support the result in Q4.

UPM, Media Relations
Mon-Fri 9:00-16:00 EEST
tel. +358 40 588 3284
media@upm.com

UPM

We deliver renewable and responsible solutions and innovate for a future beyond fossils across six business areas: UPM Fibres, UPM Energy, UPM Raflatac, UPM Specialty Papers, UPM Communication Papers and UPM Plywood. As the industry leader in responsibility, we are committed to the UN Business Ambition for 1.5°C and the science-based targets to mitigate climate change. We employ 16,600 people worldwide and our annual sales are approximately EUR 10.5 billion. Our shares are listed on Nasdaq Helsinki Ltd. UPM Biofore - Beyond fossils. www.upm.com

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