Two of Finland's biggest forestry firms have reported a significant drop in their profits during quarter 3.
Stora Enso announced a decline of 96 percent in its operational operating profit during the third quarter of 2023, with the firm's profits falling from 527 million in 2022 to 21 million euros between July and September this year.
The company reported its revenues declined 28 percent to 2.13 billion euros during the same period. Stora Enso attributed the results to weak demand and low prices affecting nearly all of its areas of operation.
Despite these challenges, the company emphasised that variable costs have started to decrease from their peak – with the exception of wood prices, which remain high.
Earlier this year, Stora Enso announced the closure of several factories and production lines, as well as the sale of some assets. These measures are set to be finalised by the end of 2023, with their economic impact to be seen from 2024 onwards.
Hans Sohlström, who took over as Stora Enso's CEO in September, told a press conference on Tuesday that he will focus on steering the company back toward profitability and creating value for its shareholders.
UPM sees 72% profit drop
UPM meanwhile announced a 72 percent drop in its comparable operating profit for the third quarter of the year, as the company's profits plummeted from 779 euros million in 2022 to 220 million euros in 2023.
The firm's total revenue fell from 3.42 billion to 2.58 billion euros – a 24 percent decrease.
"Geopolitical uncertainty, sluggish economic activity and persistent inflation have affected the demand for consumer goods," CEO Jussi Pesonen said.
UPM said it expects its comparable operating profit for the entire year to fall short of the 2022 figures but remains hopeful for a more optimistic outlook in the latter part of this year.
Alongside the financial results, the company also announced the appointment of Massimo Reynaudo as the new CEO, effective from the beginning of the new year, as Pesonen is set to retire.
Finnair, Atria report strong Q3
While the forestry industry faced a challenging third quarter, other Finnish firms reported more favourable results.
National airline Finnair announced that its profits rose to 94.3 million euros from July to September, compared to 35.2 million euros in the same period of 2022.
Passenger numbers also continued to grow, with some three million people flying on Finnair flights between July and September, marking a significant increase on the previous year's figures.
In the food sector, Atria saw a rise in its profits, reaching 19.3 million euros in contrast to the 16.2 million euros of the same period in 2022.
The company's total revenue for July to September was 429.5 million euros, compared to last year's 438.8 million.
Atria's performance was affected by a drop in sales and exports in Finland, although the company experienced some revenue growth in Estonia.
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