Rottneros (RROS) Q4 2024 earnings summary

Executive summary

• Full-year 2024 EBIT was 47 MSEK, down from 139 MSEK in 2023, mainly due to high raw material costs, maintenance shutdowns, and weak CTMP market.

• Major investments totaling 450 MSEK were completed, including CTMP capacity expansion, a new tall oil plant, solar park, and battery storage.

• No dividend proposed for 2024 to preserve financial strength amid challenging market conditions and macroeconomic uncertainty.

• Underlying EBIT in Q4 was minus 28 MSEK, impacted by dual maintenance stops and high raw material costs.

• Stabilization of operations and improved underlying results are targeted for 2024.

Financial highlights

• Q4 EBIT was minus 28 MSEK, with maintenance shutdowns and high wood costs affecting results.

• Full-year EBIT was 47 MSEK, supported by 76–87 MSEK in emission rights sales.

• Net income for 2024 was 20 MSEK, with EBITDA at 179 MSEK and EPS at 0.13 SEK.

• Available liquidity at year-end was 385–392 MSEK; equity/assets ratio stood at 59%.

• Net debt increased to 393 MSEK from net cash of 105 MSEK in 2023.

Outlook and guidance

• Market prices for pulp have flattened after peaking, with announced price increases for both hardwood and softwood pulp.

• Early signs of recovery in China and improved demand in Europe, especially for softwood chemical pulp.

• Continued focus on niche segments, safety, sustainability, and value-added products to mitigate cost pressures.

• Long-term growth expected in tissue and sustainable packaging, with investments positioning for future demand.

• Market outlook remains cautious, with CTMP market weak, especially in China and packaging board.