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SCA B Svenska Cellulosa Aktiebolaget SCA News Story

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Sweden's SCA misses Q1 sales and EBIT expectations

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

MetricBeat/MissActualConsensus Estimate
Q1 SalesMissSEK 4.74 blnSEK 5.03 bln (6 Analysts)
Q1 EPSSEK 0.54
Q1 EBITMissSEK 543 mlnSEK 721.98 mln (6 Analysts)
Q1 EBITDASEK 1.11 bln
Q1 EBITDA Margin23.40%
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.)

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