Svenska Cellulosa Aktiebolaget SCA (publ) (SCA_A) Q1 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Good morning and welcome to this presentation of SEA's 2025 first quarter results. With me here today I have President and CEO Ulf Larsson and CFO Andreas Everts to go through the results and take your questions. Over to you Ulf. Thank you Anders and also from my side good morning and a warm welcome to the presentation of our result for the first quarter 2025. During the first quarter, SEA again showed that we can deliver good profitability even in the continued challenging environment. SEA's high degree of self-sufficiency in wood raw materials mitigated a big part of the higher cost related to wood supply and we reached 1.65 billion SEK on EBITDA level and by that an EBITDA margin of 32% for the quarter. During the first quarter, SEA had strong delivery volumes, not least in the wood segment due to productivity improvements. In other segments, the volume increase has been supported by the ramp-up of strategic investments, and these investments will contribute to increased productivity and cash flow generation during upcoming years. Prices in SEA's industrial segments were generally higher in Q1 2025 than in Q1 2024, and I expect these price increases that they will further contribute to earnings in the second quarter. Global uncertainty has increased with the US tariffs. This also affects the global demand and business climate, and I will give some comments on each segment as we go through the presentation. Turning over to some financial KPIs for the first quarter of 2025. As already said, our EBITDA reached 1.65 billion SEK during the first quarter, which corresponds to a 32% EBITDA margin. Our Industrial Return on Capital Employed came out at 8% for the first quarter, counted as the average for the last 12 months. The leverage was at 1.5 and we have now finalized...