Renewable packaging products company Stora Enso has reported a decrease in net sales to €4.46bn ($4.84bn) in the first half (H1) of financial year 2024 (FY24), a 12.4% decline from €5.09bn in H1 FY23.  

Despite the fall in sales, the company's earnings per share (EPS) improved to €0.16, recovering from a loss per share of €0.05 in the first half of FY23.

The company's adjusted earnings before interest and taxes (EBIT) for the first half also rose to €317m from €271m in the corresponding period of the previous year.  

The operating result for the period was reported at €247m. 

In the second quarter (Q2) of 2024, Stora Enso's sales decreased by 3% to €2.30bn compared to €2.37bn in the same quarter of the previous year.  

However, the company's continuing operations grew by 1%.  

Its EPS for the quarter was €0.06, a significant improvement from a loss per share of €0.29 in Q2 FY23. 

The adjusted EBIT for the second quarter increased substantially to €161m from €37m in Q2 FY23, and the adjusted EBIT margin rose to 7.0% from 1.6%.  

Net debt increased by €466m to €3.497bn, primarily due to the board investment at its Oulu, Finland, site. 

Stora Enso secured a €435m long-term loan on 11 July from the European Investment Bank to fund its €1bn investment in the Oulu mill.

The loan repayment extends until 2036, enhancing the group’s debt maturity profile. The loan is currently undrawn. 

Stora Enso president and CEO Hans Sohlström said: “I am encouraged by the fact that our Q2 performance met our expectations, reinforcing our recently upgraded 2024 guidance. Advances in our profitability and cash flow improvement initiatives, coupled with more favourable market conditions in some segments, have supported an improved earnings trend for the third consecutive quarter. 

“Additionally, this has strengthened our leverage ratio in the quarter despite record-high growth investments. This positive development is a testament to our team's dedication and sets a strong foundation for future success.”  

On 15 May, Stora Enso raised its full-year 2024 adjusted EBIT guidance, attributing this to the successful implementation of profit improvement actions and more favourable market conditions.  

The company now expects the full-year 2024 adjusted EBIT to be significantly higher than the €342m reported for the full year of 2023.