STOCKHOLM, July 21, 2020 /PRNewswire/ -- JANUARY 1 - JUNE 30, 2020
(compared with January 1 - June 30,
- Net sales declined 8% to SEK
9,480m (10,304). The lower sales were mainly related to
- EBITDA amounted to SEK 2,031m
(2,900), a decrease primarily due to lower selling
- EBITDA margin was 21.4%
- Operating cash flow was SEK 614m,
- Earnings per share was SEK 1.34
- New harvesting plan confirmed, resulting in successive increase
in long-term cash flow of SEK
300-400m per year with full
APRIL 1 - JUNE 30, 2020
(compared with January 1 - March 31,
- Net sales declined 2% to SEK
4,687m (4,793), mainly related to lower delivery volumes,
offset by slightly higher selling
- EBITDA amounted to SEK 1,001m
(1,030), corresponding to an EBITDA margin of 21.3% (21.5). Lower
delivery volumes and higher costs for maintenance stops
SEK 68m (0) were offset by higher
selling prices and lower raw material
COMMENTS ON THE FINANCIAL STATEMENTS
Earnings for the second quarter of 2020 were in line with the
preceding quarter, but declined year on year.
The quarter was marked by the uncertainty surrounding the
coronavirus pandemic, with demand for SCA products at a generally
lower level than in the preceding quarter. The publication paper
product area was most affected, due to a significant drop in demand
for marketing and print advertising. Delivery volumes also
decreased for the Pulp and Paper segments. The Wood segment
reported improved earnings compared with the preceding quarter.
During the quarter, SCA continued to take a number of measures to
protect employee risk groups, reduce the spread of the virus and
ensure that production and operations are maintained. SCA has a
continued strong focus on cost control and cash flow, and has a
solid financial position and strong liquidity.
The supply of wood to SCA's industries was stable during the
quarter. Wood consumption declined slightly during the period due
to lower delivery volumes and the planned maintenance stop at
Obbola. The price of timber and pulpwood remained stable.
The market for the Wood segment strengthened during the quarter,
driven by strong demand in the building materials trade in
Scandinavia and the rest of Europe. Market prices rose slightly compared
with the preceding quarter.
Production volume in the Pulp segment was maintained at the same
level as preceding quarter but deliveries decreased, due primarily
to falling demand for pulp for publication paper. The average
selling price during the quarter was slightly higher than the
preceding quarter due to the price increase implemented at the
beginning of the period.
Demand in the kraftliner product area weakened during the second
quarter following a strong first quarter. SCA implemented a price
increase at the start of the second quarter and the prices were
therefore higher than in the preceding period. A planned
maintenance stop was carried out at Obbola during the period, and
the expansion project is progressing on schedule and on budget.
Demand in the publication paper product area decreased by
between 30% and 40% for SCA's grades during the quarter compared
with last year. SCA has adjusted production levels to the
prevailing market situation. The price of publication paper was
stable for the period.
New harvesting plan confirmed
SCA made a new forest survey in 2019 which showed that SCA had,
in addition to a higher standing volume, a 1 million
m3fo higher annual growth than previously estimated. A
higher growth rate gives greater long-term harvesting potential and
SCA will increase annual harvesting successively from about 4.3
million m3sub in 2020 to 5.4 million m3sub in
2025. The new harvesting plan results in a higher long term cash
flow, which will increase successively with full effect of an
estimated SEK 300-400m per year
Higher transaction prices for forest assets in northern
SCA has based its valuation of forest assets in Sweden on forest transactions in the areas
where SCA owns forest land. The market value of the forest has
increased during the first six months of 2020. The average market
price used in valuation of SCA's forest assets was SEK 281/m3fo at the end of
June 2020. The market price in 2019
was SEK 276/m3fo.
INVITATION TO PRESS CONFERENCE ON HALF YEAR REPORT
The press conference can be followed via webcast or telephone.
The President and CEO, Ulf Larsson,
and CFO, Toby Lawton, will present
the report and answer any questions.
Time: Tuesday, July 21, 2020 at
The press conference will be webcast live at www.sca.com. It is
also possible to participate by telephone by calling:
Sweden: +46 (0)8-5069-2180
UK: +44 (0)2071-928000
Specify "SCA" or the conference ID: 3341528.
This is information that SCA is obliged to make public pursuant
to the EU Market Abuse Regulation and the Securities Markets Act.
This report has been prepared in both Swedish and English versions.
In case of variations in the content between the two versions, the
Swedish version shall govern. The information was submitted for
publication, through the agency of the contact person set out
below, on July 21, 2020 at
08:00 a.m. CEST. The report has been
reviewed by the company's auditors.
Björn Lyngfelt, Vice President, Communications, +46 (0)60 19 34
The core of SCA's business is the forest, Europe's largest private forest holding.
Around this unique resource, we have built a well-developed value
chain based on renewable raw material from our own and others'
forests. We offer paper for packaging and print, pulp, wood
products, renewable energy, services for forest owners and
efficient transport solutions.
2019 the forest products company SCA had approximately 4,000
employees and sales amounted to approximately SEK 19.6 bn. SCA was founded in 1929 and has its
headquarters in Sundsvall, Sweden.
More information at www.sca.com
For further information, please contact
Investor Relations Director
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