UPM-Kymmene Oyj (OTCPK:UPMKF) Q3 2024 Outcomes Convention Name October 29, 2024 7:15 AM ET
Firm Individuals
Massimo Reynaudo – Chief Govt Officer
Tapio Korpeinen – Chief Monetary Officer
Convention Name Individuals
Ephrem Ravi – Citigroup
Cole Hathorn – Jefferies
Robin Santavirta – Carnegie
Charlie Muir-Sands – BNP Paribas Exane
Ramchandra Kamath – Barclays
Andrew Jones – UBS
Massimo Reynaudo
Hiya, everybody. Welcome to UPM’s Quarter Three 2024 Outcomes Webcast. My title is Massimo Reynaudo, I am the CEO of UPM. Right here with me is Tapio Korpeinen, the CFO.
Tapio Korpeinen
Hello to everybody on the road.
Massimo Reynaudo
Collectively, we are going to illustrate the principle parts of the UPM efficiency final quarter and year-to-date. Let me begin with the important thing parts that characterize the quarter. Our Q3 outcomes improved each year-on-year and quarter-on-quarter with a great contribution from the totally ramped up Paso de los Toros pulp mill. The earnings enchancment, albeit good, was decrease than earlier anticipated because the market demand of our merchandise slowed down after a powerful begin of the 12 months. On this slower restoration atmosphere, we’re taking decisive actions to make sure the competitiveness of our companies.
Whereas that is essential for our profitability, it would additionally assist our development ambitions going ahead. Let’s examine now this extra intimately. Our quarter 3 gross sales decreased by 2% from final 12 months. The truth is, in the course of the quarter, our volumes realized decrease than earlier anticipated, and this impacted each gross sales and comparable EBIT within the quarter. Our comparable EBIT totaled €291 million or 11.5% of gross sales, and it grew 32% year-on-year or 60% sequentially from quarter 2.
So what occurred in the course of the quarter? Let’s begin with the scenario in Europe. As mentioned earlier than and most visibly in Europe, the demand slowed down for many of the UPM merchandise after the robust begin of the
