Rottneros (RROS) Q2 2024 earnings summary

Executive summary

• Q2 2024 turnover increased by 4% to 711 MSEK, with EBIT at 30 MSEK, reflecting strong pulp demand, stable operations, and record CTMP production.

• Production stabilized after a challenging start to the year, with improved results over Q1 2024 and solid deliveries.

• Net income for Q2 was 22 MSEK, with EPS at 0.15 SEK.

• Operations have stabilized, and investments are proceeding according to plan, supporting a strong balance sheet.

• A serious workplace accident occurred in June at Rottneros Bruk, resulting in severe injuries.

Financial highlights

• Q2 2024 net sales: 711 MSEK (+4% YoY); EBIT: 30 MSEK; net income: 22 MSEK.

• EBIT for the first half of 2024 was 35 MSEK, compared to 190 MSEK in H1 2023, impacted by lagging sales prices and high variable costs.

• EBITDA for Q2 was 65 MSEK, down from 71 MSEK in Q2 2023.

• Investments in H1 totaled 216 MSEK, mainly for capacity expansion and renewable energy projects.

• Available liquidity at quarter-end was 298 MSEK; net debt stood at 112 MSEK.

Outlook and guidance

• All major investment projects are progressing as planned, with total 2024 investments expected at 430 MSEK.

• Expanded CTMP capacity and new solar energy installations to be operational in H2 2024.

• Expects continued strong demand for tissue and packaging grades, with positive long-term drivers such as e-commerce and sustainability trends.

• Ongoing investments in capacity and innovation are expected to support future growth and market share.