Holmen Interim Report January–June 2019

    Quarter   January-June Full Year 
SEKm  2-19  1-19  2-18  2019   2018  2018 
Net sales  4 361  4 260  4 164  8 621  8 264  16 055 
Operating profit excl. item affecting comparability  574  643  618  1 217  1 271  2 476 
Operating profit   574  643  618  1 217  1 271  2 382 
Profit after tax  451  503  759  954  1 266  2 268 
Earnings per share, SEK  2.7  3.0  4.5  5.7  7.5  13.5 
Operating margin, %*  13.2  15.1  14.9  14.1  15.4  15.4 
Return on capital employed, %*  8.6  9.7  9.8  9.2  10.1  9.7 
Return on equity, %  7.7  8.5  13.6  8.1  11.4  10.1 
Cash flow before investments and working capital  884          655  662  1 539  1 248  2 500 
Debt/equity ratio  0.14  0.12  0.15  0.14  0.15  0.12 

*Excluding an item affecting comparability of SEK -94 million in the fourth quarter of 2018.

  • Operating profit for January–June was SEK 1 217 million (January–June 2018: SEK 1 271 million). Higher prices for paper had a positive effect on earnings, while rising wood costs and a maintenance shutdown in paperboard had a negative impact. The profit includes SEK +80 million from sale of a permit to build a wind farm on Holmen property. In the same period last year, the profit included SEK +70 million from the divestment of a forest property.
  • Operating profit in the second quarter totalled SEK 574 million, compared with SEK 643 million in the first quarter. Profit in the quarter was boosted by the sale of a wind farm permit but was negatively affected by a maintenance shutdown in paperboard and seasonally lower hydropower production.
  • Profit after tax for January–June amounted to SEK 954 million (1 266), which corresponds to earnings per share of SEK 5.7 (7.5). Profit in the preceding year was positively affected by SEK 300 million as a result of a lower tax rate in Sweden.
  • To make the capital structure more efficient, the Board of Directors has made the decision to initiate repurchase of own shares.

For further information please contact:
Henrik Sjölund, President and CEO, tel. +46 8 666 21 05
Anders Jernhall, Executive Vice President and CFO, tel. +46 8 666 21 22
Stina Sandell, Senior Vice President Sustainability and Communications, tel. +46 73 986 51 12

This information such that Holmen AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Swedish Securities Market Act (2007:528). The information was submitted for publication, through the agency of the contact person set out above, at 12.15 CEST on Thursday, 15 August 2019.

Holmen’s business concept is to own and add value to the forest. The forest holdings form the basis of the business – an ecocycle in which the raw material grows and is refined into everything from wood for climate-smart building to renewable packaging, magazines and books. The forest is managed to provide a good annual return and stable value growth while our production operations are run with a focus on profitability and greater value added. In 2018 Holmen’s net sales were just over SEK 16 billion and the group has approx. 3 000 employees. Holmen’s shares are listed on Nasdaq Stockholm, Large Cap. For more information, visit holmen.com.

About Us

Holmen’s business concept is to own and add value to the forest. The forest holdings form the basis of the business – an ecocycle in which the raw material grows and is refined into everything from wood for climate-smart building to renewable packaging, magazines and books. The forest is managed to provide a good annual return and stable value growth while our production operations are run with a focus on profitability and greater value added. In 2019 Holmen’s net sales were approx. SEK 17 billion and the group has approx. 3 000 employees. Holmen’s shares are listed on Nasdaq Stockholm, Large Cap. For more information, visit holmen.com.