Helsinki (News release) -- UPM-Kymmene reports 2024 sales of Euro 10.3 billion, a 1% decrease from Euro 10.5 billion in 2023. Comparable EBIT increases by 21% to Euro 1.2 billion, accounting for 11.8% of sales, up from 9.7% in 2023. Operating cash flow declines to Euro 1.35 billion from Euro 2.27 billion in the previous year. Net debt rises to Euro 2.87 billion, with a net debt to EBITDA ratio of 1.66, compared to 1.55 in 2023. These figures were released in UPM's 2024 financial statements on February 5, 2025.

In Q4 2024, sales grow 4% year-over-year to Euro 2.63 billion, with comparable EBIT rising 29% to Euro 418 million. Operating cash flow reaches Euro 570 million, up from Euro 456 million in Q4 2023. UPM Fibres continues increasing pulp deliveries, while UPM Raflatac streamlines operations by consolidating production from the Kaltenkirchen site. UPM Communication Papers closes a fine paper machine at Nordland Papier, Germany, and UPM Energy benefits from higher electricity prices.

UPM Paso de los Toros pulp mill in Uruguay reaches full production in 2024, adding approximately 300 thousand tonnes of pulp capacity. The railway connecting the mill to Montevideo port is fully operational, enhancing efficiency. In advanced materials, UPM Raflatac strengthens its market position by acquiring Belgium-based Grafityp. The company plans to expand graphics solutions and improve specialty paper production.

The Leuna Biorefinery in Germany begins commissioning in late 2024, with integrated commercial production expected in H2 2025. An impairment of Euro 373 million is recorded due to cost overruns and construction delays. UPM Biofuels reports a weak 2024 performance but anticipates improved margins in 2025.

UPM's board proposes a Euro 1.50 dividend per share for 2024 and initiates a share buy-back program covering 1.1% of outstanding shares, with a maximum expenditure of Euro 160 million. The company expects comparable EBIT in H1 2025 to range between Euro 400 million and Euro 625 million, compared to Euro 515 million in H1 2024.

Pulp deliveries are forecasted to increase in 2025, particularly for labelling materials, specialty papers, and plywood, while communication paper volumes are set to decline. UPM expects a reduction in pulp production costs in Uruguay and plans for further capacity increases through debottlenecking at its mills. The company anticipates improved performance in UPM Biofuels due to lower variable costs and slightly better market conditions.

UPM's profitability remains sensitive to pulp and electricity prices. A Euro 50 per tonne change in average pulp price would impact annual comparable EBIT by Euro 170 million to Euro 270 million, depending on pricing correlations. A Euro 10 per MWh change in average electricity price in Finland would impact comparable EBIT by Euro 30 million.