Finnish packaging company Stora Enso has registered €2.12bn ($2.26bn) in sales in the third quarter (Q3) of financial year 2023 (FY23), down 28.2% from €2.96bn in the same period in FY22.
During the quarter, the company’s operational earnings before interest and taxes (EBIT) was down by 96.0% to €21m against €527m in Q3 FY22.
Its operational EBIT margin also decreased to 1.0% in Q3 FY23 from 17.8% in Q3 FY22.
Stora’s operating profit dropped by 100.2% to -€1m over the quarter, compared with €511m in Q3 FY22.
The company also posted negative earnings per share of -€0.04 in Q3 FY23 against €0.47 in the same period last year.
In the first three quarters of FY23, sales of Stora declined 18.1% to €7.22bn against €8.81bn in the corresponding period in FY22.
The company’s operational EBIT for the period was €292m, down by 81.0% from €1.53bn in the prior year's period.
Its operating result also decreased by 99.7% to €4m over the period.
Stora Enso president and CEO Hans Sohlström said: “In line with the previous quarter’s prediction, Stora Enso had an unsatisfactory financial performance in the third quarter. We faced deteriorating market conditions and price pressure for all segments, including our packaging business. The global pulp demand is still weak, and the supply is high.
“The inflation and high-interest rates continue to negatively affect the construction market, weighing down on our wood products offering. Our variable costs are down from peak levels but still high compared to historical levels, while wood availability remained tight. We anticipate no significant improvement in market demand or inventory levels for the year end.”
