SCA (SCA) Q4 2024 earnings summary

Executive summary

• Achieved SEK 7.1 billion EBITDA for 2024, with a 35.3% margin, supported by higher prices, volumes, and strategic investments despite higher wood raw material costs and challenging market conditions.

• Net sales rose 12% year-over-year to SEK 20,232m, driven by ramped-up investments and strong pricing.

• Record-high harvesting from company-owned forests (5.2 million m³) and increased standing forest volume to 274m m³fo offset raw material cost increases.

• Profitability improved with good cost control and self-sufficiency in wood, energy, and logistics.

• Proposed dividend of SEK 3.00 per share, up from SEK 2.75, reflecting a commitment to stable, growing shareholder returns.

Financial highlights

• Full-year EBITDA up 5% to SEK 7,143m; EBIT reached SEK 5,027m; net profit for 2024 was SEK 3,639m (SEK 5.18 per share).

• Q4 net sales up 17% year-over-year to SEK 5,135m; Q4 EBITDA was SEK 1,649m (32% margin), impacted by SEK 338m in planned maintenance costs.

• Operating cash flow for the year was SEK 3,187m, up from SEK 2,985m in 2023.

• Net debt/EBITDA improved to 1.5x; net debt at year-end: SEK 10,885m; net debt/equity at 11%.

• Forest assets valued at SEK 107.3bn.

Outlook and guidance

• Expecting 15–20% higher output from Obbola in 2025 as ramp-up continues, with ramp-up costs gradually decreasing.

• Strategic investments in the value chain and forest growth expected to support increasing dividends.

• Continued focus on cost control and self-sufficiency to mitigate higher raw material costs.

• Positive market outlook for wood, pulp, and containerboard, with price increases expected in Q1 and Q2.

• SCA continues to hedge major currency exposures for 2025.