Stora Enso Oyj (STE_A) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Hello and welcome to Stora Enso's second quarter 2025 results presentation. My name is Jutta Mikkola. I'm the Head of Investor Relations. I'm joined by Hans Solström, President and CEO of Stora Enso and CFO Niklas Rosenlev. The title of today's presentation is Solid Business Performance in a Volatile Demand Environment. The agenda will begin with key highlights and strategic focus areas presented by Hans. Then Niklas will review the company's financial performance. And then Hans will conclude with a summary of key takes and focus for 2025. Thank you for joining us today. And I will now hand over to Hans Solström. Thank you, Jutta. During the second quarter of 2025, we continued to make good progress in building a stronger and more competitive Stora Enso. While market conditions remained challenging, we focused on the areas within our control. Driving efficiencies, insourcing operations, commercial excellence, working capital and fixed costs. In addition, during the second quarter, we took significant steps to strengthen our strategic focus on renewable packaging. To begin with, it's notable that all operational segments achieved positive adjusted EBIT for our second consecutive quarter, despite continued weakness in board and pulp markets. Consumer demand remained at relatively low levels and was impacted by geopolitical uncertainty. Sales at 2.4 billion euros grew 5% year on year supported by high demand for wood products and packaging solutions. Adjusted EBIT was 126 million euros as the old ramp up had an approximately 50 million euro negative impact on the second quarter adjusted EBIT. Our continuous dedication efforts to improve cashflow resulted in operating working capital to sales of 7%, a decrease of two percentage points year on year. During the quarter, we...