2024-07-26 16:38:06 ET
Svenska Cellulosa Aktiebolaget SCA (publ) (SVCBF)
Q2 2024 Results Conference Call
July 26, 2024 04:00 AM ET
Company Participants
Anders Edholm - Senior Vice President of Sustainability & Communications
Ulf Larsson - President and Chief Executive Officer
Andreas Ewertz - Chief Financial Officer
Conference Call Participants
Charlie Muir-Sands - BNP Paribas
Lars Kjellberg - Stifel
Cole Hathorn - Jefferies
Oskar Lindstrom - Danske Bank
Gaurav Jain - Barclays
Johannes Grunselius - DNB Markets
James Perry - Citi
Andrew Jones - UBS
Presentation
Anders Edholm
Good morning, and welcome to this presentation of the SCA Half Yearly Report for 2024. With me here today, I have President and CEO, Ulf Larsson, and CFO, Andreas Ewertz.
And with that, over to you, Ulf.
Ulf Larsson
Thank you, Anders. Good morning also from my side, a warm welcome to the presentation of the results for the second quarter 2024 and when I summarize the second quarter, I can state that the markets for all fiber-based products in all areas are sequentially stronger with higher prices in Q2 in comparison with Q1.
We can also note that we have a delay effect in pricing for containerboard and pulp with one to two months. In renewable energy, we have seen a negative market development in Europe for liquid biofuels, also affecting tall oil prices. So when we compare Q2 '24 with the same period last year, this is, of course, not the least due to reduced mandate for biofuels in Sweden since first of January this year.
And due to a seasonal effect, we also see 40% lower deliveries of wood pellets in the second quarter versus the first one this year. Also this quarter, we noted a high demand on wood raw materials and by that continued increase in prices. We have in SCA also increased volumes from our own forest which, in comparison with the second quarter '23 has strengthened the result in business area Forest.
Sales increased with 15% and EBITDA with 11% Q2 '24 versus the second quarter '23, higher prices, increased volume and a positive currency effect explains the improvement. This slide will give you an overview of KPIs for the second quarter '24. Our EBITDA reach, as you can see SEK1.9 billion during the second quarter, which corresponds to an EBITDA margin of 36%. Our industrial return on capital employed came out of 4% for the second quarter accounted for the last 12 months.
The leverage is at 1.8% and net debt to equity was 11%. And we have now finalized our big strategic investments in Obbola, Ortviken and Gothenburg. And just now, they are under ramp up, but coming years, they will, of course, contribute in a positive way. Then I will make some comments for each segment, starting with the Forest....
Read the full article on Seeking Alpha
For further details see:
Svenska Cellulosa Aktiebolaget SCA (publ) (SVCBF) Q2 2024 Earnings Call Transcript