Stora Enso: Thriving in Volatility with Renewable Focus

Stora Enso, a leading provider of renewable solutions in packaging, biomaterials, wooden construction, and forestry, has published its Annual Report and Remuneration Report for 2024. The company's strategic focus on renewable products and sustainability has driven its financial performance and positioned it well to navigate volatile market conditions and geopolitical uncertainties.



Stora Enso's financial performance in 2024 demonstrated its resilience and growth potential. Sales increased by 7% to EUR 2,322 million in Q4/2024 compared to the same period in 2023. The adjusted EBIT margin improved to 5.2% from 2.3% during the same period. The company's operating result (IFRS) was EUR -279 million, including items affecting comparability of EUR -768 million, mainly related to impairments and fair valuations. Earnings per share (EPS) were EUR -0.43, and EPS excluding fair valuations (FV) was EUR -0.81.

Stora Enso's commitment to sustainability has been a significant driver of its growth and success. The company achieved a 53% reduction in Scope 1 and 2 greenhouse gas emissions by the end of 2024, surpassing its 2030 target of a 50% reduction from the 2019 base year. This focus on sustainability has not only contributed to Stora Enso's environmental responsibility but also enhanced its reputation and competitive advantage in the market.



Stora Enso's investment in the consumer board line at the Oulu site in Finland is a critical component of its growth strategy. The new line is expected to produce high-quality, renewable packaging materials, catering to the increasing demand for sustainable products. While the ramp-up period may impact the company's adjusted EBIT negatively in the first half of 2025, the investment is expected to bring significant benefits in the long run, such as improved operational efficiency, reduced costs, and increased market share in the consumer board market.

In conclusion, Stora Enso's Annual Report and Remuneration Report 2024 highlight the company's strong financial performance and commitment to sustainability. Despite volatile market conditions and geopolitical uncertainties, Stora Enso's strategic focus on renewable products and sustainability has positioned it well to navigate challenges and capitalize on opportunities. The company's investment in the consumer board line at the Oulu site in Finland is a testament to its long-term growth strategy and commitment to delivering value to shareholders. As Stora Enso continues to execute its strategic plan, investors can expect the company to maintain its competitive edge and generate attractive returns.