Overview
Swedish forest products firm's Q1 sales and EBIT missed analyst expectations on lower prices, higher costs
Q1 earnings per share fell 53% yr/yr to SEK 0.54
Company says integrated value chain and self-sufficiency helped mitigate rising costs
Outlook
Company says uncertain market conditions persist due to geopolitical turmoil and currency fluctuations
SCA maintains focus on cost control to address challenging forest products market
Company reports stable supply of wood raw material and balanced sawlog and pulpwood markets
Result Drivers
LOWER SELLING PRICES AND NEGATIVE FX - Co said lower selling prices and negative exchange rate effects were main drivers behind lower net sales and earnings
HIGHER RAW MATERIAL COSTS - Co said higher raw material costs contributed to lower EBITDA and operating profit
SELF-SUFFICIENCY MITIGATED COSTS - Co said high rate of self-sufficiency in wood raw material, energy and logistics helped mitigate impact of rising costs
Company press release: ID:nWkrWbcF2
Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
Miss
SEK 4.74 bln
SEK 5.03 bln (6 Analysts)
Q1 EPS
SEK 0.54
Q1 EBIT
Miss
SEK 543 mln
SEK 721.98 mln (6 Analysts)
Q1 EBITDA
SEK 1.11 bln
Q1 EBITDA Margin
23.40%
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 9 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the forest & wood products peer group is "buy"
Wall Street's median 12-month price target for Svenska Cellulosa Aktiebolaget SCA is SEK120.00, about 10.2% above its April 23 closing price of SEK108.90
The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 22 three months ago
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)