Holmen’s year-end report 2019
| Quarter | Full year | ||||
| SEKm | 4-19 | 3-19 | 4-18 | 2019 | 2018 |
| Net sales | 4 194 | 4 144 | 3 948 | 16 959 | 16 055 |
| Operating profit excl. items affecting comparability | 587 | 541 | 613 | 2 345 | 2 476 |
| Operating profit | 9 357 | 541 | 519 | 11 115 | 2 382 |
| Profit after tax | 7 368 | 409 | 543 | 8 731 | 2 268 |
| Earnings per share, SEK | 45.5 | 2.5 | 3.2 | 52.6 | 13.5 |
| Operating margin, %* | 14.0 | 13.0 | 15.5 | 13.8 | 15.4 |
| Return on capital employed, %* | 9.0 | 8.3 | 9.4 | 8.9 | 9.7 |
| Return on equity, %* | 7.6 | 7.2 | 10.7 | 7.8 | 10.4 |
| Cash flow before investments and change in working capital | 665 | 522 | 671 | 2 727 | 2 500 |
| Debt/equity ratio, % | 9 | 18 | 12 | 9 | 12 |
*Excluding items affecting comparability, see further on page 17.
- Operating profit for 2019 was SEK 11 115 million (2 382), including items affecting comparability of SEK 8 770 million, which mainly relates to a change in the accounting of forest assets. Excluding items affecting comparability, operating profit was SEK 2 345 million (2 476). Earnings were positively affected by higher selling prices, but were negatively impacted by increased wood costs and more extensive maintenance shutdowns.
- Operating profit for the fourth quarter excluding items affecting comparability was SEK 587 million, compared with SEK 541 million in the third quarter. Costs increased from a seasonally low level. Profit for the previous quarter was impacted by SEK 130 million relating to a significant maintenance shutdown.
- Profit after tax was SEK 8 731 million (2 268). Items affecting comparability had an impact of SEK 6 943 million on profit after tax.
- At year-end, the book value of forest assets rose by SEK 22 134 million to SEK 41 345 million as a result of the assets being recognised based on transactions in those areas where Holmen owns land. Of this increase, SEK
- 9 079 million is recognised in operating profit as an item affecting comparability and SEK 13 055 million in other comprehensive income. The change has increased the recognised deferred tax liability by SEK 4 560 million and equity by SEK 17 574 million.
- As a result of the material increase in equity due to the change in the accounting of forest assets, the Board has decided that net financial debt should not exceed 25 per cent of equity, compared with 50 per cent previously. At year-end the figure was 9 per cent.
- The Board proposes a dividend of SEK 7 (6.75) per share.
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. The information was submitted for publication, through the agency of the contact person set out above, at 12.20 CET on Thursday, 30 January 2020.
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.