Holmen shows solid profitability despite a weaker market
Our profit decreased in the second quarter, but remained at a historically good level, at SEK 1 138 million, nearly half of which came from forests and renewable energy. Thanks to our strong cash flow, we were able to pay out an extra dividend and buy back 1.5 per cent of outstanding shares while maintaining a low indebtedness.
Holmen’s Interim Report January-June 2023 was published on August 17, 2023.
Despite the economic slowdown there are not enough supply of forest raw materials. Competition on the wood market remained strong in the Nordics during the quarter and prices increased further. Wood prices are now 30 per cent above their historical level, which increased profit from forests to SEK 390 million. Our position on the wood market, with good control over raw materials and the entire value chain, ensures the long-term security of our raw material supplies and gives us good opportunities to continue developing our industries.
- Operating profit for January-June 2023 was SEK 2 875 million (January-June 2022: SEK 3 984 million). Excluding items affecting comparability last year, operating p rofit decreased by SEK 844 million due to lowerwood product prices.
- Compared with the first quarter, the second quarter operating profit decreased by SEK 599 million to SEK 1 138 million as a result of a major maintenance shutdown in Workington and that previous quarter benefitted from electricity price hedges.
- Profit after tax for January-June amounted to SEK 2 261 million (3 125), which corresponds to earnings per share of SEK 14.0 (19.3).
- In the second quarter, a total of SEK 2 592 million of ordinary and extra dividends were paid and own shares were bought back for SEK 967 million.