January-December 2024 (1-12/2023)
- Sales were EUR 5,747 million (6,110).
- Operating result was EUR 186 million (498). The comparable operating result was EUR 203 million (488).
- Result before taxes was EUR 131 million (488).
- Comparable result before taxes was EUR 148 million (482).
- Comparable return on capital employed was 2.9% (7.2).
- Net cash flow from operations was EUR 11 million (926).
October-December 2024 (10-12/2023)
- Sales were EUR 1,474 million (1,486).
- Operating result was EUR 29 million (55). The comparable operating result was EUR 33 million (57).
- Result before taxes was EUR 13 million (50). Comparable result before taxes was EUR 16 million (51).
- Comparable return on capital employed was 2.0% (3.9).
- Net cash flow from operations was EUR 176 million (439).
Events during the fourth quarter of 2024
- The average sales prices of Metsä Group’s softwood market pulp decreased by 5% in Europe and 1% in China compared to the previous quarter.
- The European market situation for long-fibre market pulp remained stable. In China, purchasing activity rose back to normal level.
- Metsä Group’s deliveries of paperboards, especially folding boxboard, fell from the previous quarter. The decline was partly explained by seasonality.
- The comparable operating result for October–December includes an insurance compensation of EUR 15.5 million for the gas explosion at the Kemi bioproduct mill.
- Metsäliitto Cooperative signed a EUR 200 million sustainability-linked revolving credit facility agreement in December.
- The Kemi bioproduct mill was inaugurated in October.
- The decision was made to close the Suolahti plywood mills in stages.
Result guidance for January–March 2025
In January–March 2025, Metsä Group’s comparable operating result is expected to be better than in October–December 2024.
Events after the review period
On 16 January 2025, Metsä Group announced its plan to close the Tako paperboard mill in Tampere, Finland, and improve the efficiency of the Kyro paperboard mill in Kyröskoski, Finland, due to long-term poor profitability. The company initiated change negotiations at both mills and in related operations. Any decisions on personnel reductions and mill closures will be taken after the change negotiations have ended.
On 8 January 2025, Metsä Group announced that it would start implementing an investment and capacity adjustment plan at its tissue paper mill in Kreuzau, Germany. Several efficiency measures, investments in renewing production equipment and the closure of one tissue paper machine are planned for the mill. Change negotiations started at the mill in January.
At its meeting on 6 February 2025, the Board of Direc-tors of Metsäliitto Cooperative has appointed Jussi Vanhanen Metsäliitto as CEO of the Cooperative as of 1.7.2025. At the same time, he serves as the President and CEO of Metsä Group.
On 6 February 2025, Metsä Board announced that it will start a pre-engineering in cooperation with Metsä Tissue to investigate potential change of product produced on Husum BM2. The pre-engineering is expected to take 12 months and it would enable new capacity of approximately 80,000 tonnes of foodservice packaging papers and siliconized greaseproof papers. Production of the white kraftliner will continue at full capacity at least until the possible investment shutdown of BM2. The start-up of the rebuilt line would be earliest in Q4/2027.
The Board of Directors’ proposal for the distribution of profit
Metsäliitto Cooperative’s Board of Directors has decided to propose that for 2024, interest of 5.5% (6.5 for 2023) be paid on the participation share capital invested by members, and that interest of 5.0% (6.0) be paid on Metsä1 additional shares, 2.0% (3.0) on addi-tional capital A, and 1.0% (1.0) on additional capital B. The Board of Directors also proposes that a surplus reimbursement of EUR 0.30 per cubic metre of industrial roundwood received from a member over the last four concluded financial periods be distributed. The reimbursement of surplus will be primarily paid as Metsä1 additional shares, but in money for the part corresponding to the tax withheld for each member. If the right to the shares has been transferred to another person in accordance with the rules of the cooperative, the interest will be paid to the person who is registered as the owner on the record date, 31 March 2025. The proposed payment date is 12 May 2025. If a member entitled to a surplus reimbursement terminates their membership in the cooperative before the date of payment, this share of the surplus reimbursement will not be distributed. In total, the proposed profit distribution would be approximately EUR 93 million (101), of which the surplus reimbursement based on wood trade would be approximately 17%.
President and CEO Ilkka Hämälä:
The year 2024 was exceptionally weak financially, with comparable operating profit falling to EUR 203 million. Demand in our main markets was subdued in all product groups, except for tissue and cooking papers and Kerto® LVL. At the beginning of the year, political strikes caused a loss of EUR 60 million. The effects of higher raw material and logistics costs could not be passed on to product prices, as demand was weak.
Major development investments in recent years have significantly increased depreciation. The positive effects of new capacity on profits have not yet materialised in the sawmill, pulp and paperboard industries due to the start-up of production and weak demand.
The development investments already made and those still being planned will strengthen Metsä Group’s operational competitiveness, which means that our ability to operate in a challenging competitive environment is strong. The Group’s equity ratio has remained stable at 56%. The Group’s parent company Metsäliitto Cooperative remains free of debt. We are therefore well placed to continue our planned long-term development.
In the wood market, trade was normal, and prices remained at a record high all year compared with figures across the last two decades. Metsä Group aims to be a forerunner in forestry that combines the ecological and economic development of forests. A third of the wood trade in 2024 was conducted under the Metsä Group Plus model, which uses enhanced forestry measures to safeguard biodiversity. The objective is to achieve regenerative forestry, where the impact of commercial forest management on forest biodiversity is net positive. Key actions to achieve this goal include the diversification of tree composition, increasing the amount of decaying wood, extending buffer zones and controlled burning of small forest areas to support species that live in burnt forest. The enhanced ecological forest management services have been very well received by our owner-members.
The overall situation for the mechanical forest industry has been weak due to the continuing recession in the construction industry and high wood prices. We had to significantly curtail sawn timber production for demand and profitability reasons in 2024. Demand for Kerto LVL has been good, and we have been able to use all our Kerto LVL capacity at a slightly rising price level. This is because of the efficiency advantage of Kerto LVL in industrial construction and stronger demand in the US market than in Europe. In 2024, the construction of the new Kerto LVL mill in Äänekoski progressed, and the installation phase is about to begin. The commissioning of the mill will begin in early 2026.
The Chinese pulp market, which is important for Metsä Group, experienced strong fluctuation during 2024. In the first quarter, demand and prices increased, but in the second quarter, demand almost came to a standstill. During the third quarter, the market started to pick up again, and softwood pulp trading resumed at slightly higher prices. In Europe, demand is stable but weak due to a further decline in the consumption of printing papers. The use of pulp in hygiene products and packaging materials is increasing. Metsä Fibre’s four mills represent the most efficient quarter in a global comparison of market softwood pulp producers. The bioproduct mills in Kemi and Äänekoski are in a class of their own – the best of the best. A strong pulp indus-try provides Metsä Group with a solid basis for developing its business to increase the value of the forest industry and forestry.
Global demand for packaging materials made from renewable wood raw materials continues to grow. Growth is driven by economic growth, increasing food packaging and the replacement of fossil packaging materials with renewable raw materials. The competitiveness of product quality and the growth of customer demand are good for both our folding boxboards and higquality linerboards. Our challenge, especially in the EMEA region, is the growing overcapacity in Chinese paperboard. In this situation, Metsä Board’s competitive edges are its strong sustainability performance, high and consistent product quality, and comprehensive and competent customer service. In the paperboard industry, we have many development projects underway to improve the efficiency and quality of our mills and products. We are also assessing our potential to produce new packaging materials.
Metsä Group is a leading player in the Nordic tissue paper industry. Our consumer brands Serla and Lambi, as well as our Katrin product family for professionals, are known to almost everyone. In addition, we produce high-quality products for private labels. Our two mills in Germany also make Katrin products and privatelabel products for major Central European retail chains. In Eastern Europe, we operate both under our own brands and those of retailers. A major growth area for our tissue industry is the UK, where we have sold increasing product volumes from our conti-nental European mills, and where we are now considering a potential mill investment. Our investment in Mariestad, Sweden, will start at the end of 2025 and will strengthen our role in Scandinavia. Cooking papers is a small segment with sales of around EUR 150 million, but its growth prospects are very interesting thanks to the growing use of food packaging, which boosts this product category.
Metsä Group is determined to build on its success story in forestry and the forest industry. We take external factors into account in our operations. We promote biodiversity and meet the challenges of combating climate change. Resource-efficient products made from renewable wood raw materials are our answer to the needs of people’s daily life. Our aim is not to support overconsumption but to create sustainable solutions to meet people’s basic needs. Wood construction is a way to create environmentally efficient housing, and fibre-based packaging can reduce food waste and ensure a high level of recyclability of packaging material. Hygiene products made from wood fibre contribute to health and wellbeing.
Our operations are founded on Finnish forests. Forest health, biodiversity and resilience to climate change are important to all Finns and are especially close to the hearts of our more than 90,000 owner-members
| Key figures | ||||
| 2024 | 2023 | 2024 | 2023 | |
| 1–12 | 1–12 | 10–12 | 10–12 | |
| Sales, EUR million | 5,747.2 | 6,110.4 | 1,474.5 | 1,486.1 |
| EBITDA, EUR million | 654.1 | 845.3 | 162.0 | 172.3 |
| Comparable, EUR million | 648.8 | 833.0 | 151.3 | 174.3 |
| % of sales | 11.3 | 13.6 | 10.3 | 11.7 |
| Operating result, EUR million | 186.4 | 498.1 | 29.2 | 55.0 |
| Comparable, EUR million | 203.0 | 487.9 | 32.7 | 57.1 |
| % of sales | 3.5 | 8.0 | 2.2 | 3.8 |
| Result before income tax, EUR million | 131.3 | 487.8 | 12.6 | 49.7 |
| Comparable, EUR million | 147.6 | 481.6 | 16.2 | 51.5 |
| Result for the period, EUR million | 108.5 | 383.6 | 10.5 | 40.8 |
| Return on capital employed, % | 2.7 | 7.3 | 1.9 | 3.8 |
| Comparable, % | 2.9 | 7.2 | 2.0 | 3.9 |
| Return on equity, % | 1.9 | 6.8 | 0.8 | 2.9 |
| Comparable, % | 2.1 | 6.7 | 1.0 | 3.0 |
| Equity ratio, % | 56.2 | 55.9 | 56.2 | 55.9 |
| Net gearing ratio, % | 22.2 | 11.7 | 22.2 | 11.7 |
| Interest-bearing net liabilities, EUR million | 1,235.7 | 662.9 | 1,235.7 | 662.9 |
| Total investments, EUR million | 603.3 | 1,193.2 | 181.0 | 328.4 |
| Net cash flow from operations, EUR million | 10.9 | 925.6 | 175.7 | 438.7 |
| Personnel at the end of the period | 9,581 | 9,464 | 9,581 | 9,464 |
| Sales and Operating result | |||||
| 1–12/2024, EUR million | Wood Supply and Forest services | Wood Products Industry | Pulp and Sawn timber industry | Paperboard Industry | Tissue and Greaseproof papers |
| Sales | 2,360.1 | 553.9 | 2,328.3 | 1,938.6 | 1,152.9 |
| Other operating income | 6.6 | 15.5 | 132.6 | 77.8 | 29.6 |
| Operating expenses | -2,329.6 | -525.5 | -2,208.1 | -1,840.4 | -1,034.0 |
| Depreciation and impairment losses | -4.6 | -36.1 | -247.0 | -113.6 | -47.0 |
| Operating result | 32.5 | 7.8 | 5.8 | 62.3 | 101.6 |
| Items affecting comparability | -4.1 | 13.0 | -3.5 | 6.7 | 1.6 |
| Comparable operating result | 28.4 | 20.8 | 2.2 | 69.0 | 103.2 |
| % of sales | 1.2 | 3.8 | 0.1 | 3.6 | 9.0 |
Near-term outlook
The demand for wood will particularly concern thin-ning sites suitable for summer harvesting, as well as wood acquired through delivery sales. We will also buy regeneration felling sites as usual. In energy wood, the demand will focus on crown wood and small trees. Demand for forest management services is projected to increase in 2025 compared to the previous year.
Construction is not expected to recover in the first quarter of the year, which is reflected in the continued weak demand for softwood plywood in particular. However, demand for Kerto LVL products will continue to be good, and new customer relationships will support demand for Kerto LVL.
Overall demand for birch plywood is expected to remain stable despite the recent seasonal cooling of the market. Demand for speciality plywood products among industrial customers is expected to remain low.
In the UK, demand for the upgrading business is expected to remain stable in the DIY segment, but weaker than normal in the wholesale customer segment and new construction in the coming months.
Global demand for market softwood pulp is expected to remain stable at the beginning of the year. Pulp capacity closures announced in 2024 with constraints affecting the availability of wood raw material in North America will further reduce the supply of softwood market pulp. Demand for sawn timber is expected to remain at the current level in the first quarter and to increase slightly in the second quarter.
The general demand for consumer products and fresh fibre paperboards will continue to be influenced by the development of consumers’ purchasing power and general purchasing behaviour. The growth of paperboard capacity, which is faster than the growth of demand, may cause imbalances, especially in the European paperboard market. In January–March 2025, paperboard delivery volumes are expected to increase from the first quarter. Sales prices in local currencies are expected to remain stable.
Demand for tissue and greaseproof papers is expected to remain stable.
METSÄ GROUP