January–December 2022 compared with January–December 2021
Quarter | Full year | |||||||||
SEKm | 2022:4 | 2021:4 | % | 2022:3 | % | 2022 | 2021 | % | ||
Net sales | 4,873 | 4,763 | 2 | 5,007 | -3 | 20,794 | 18,822 | 10 | ||
EBITDA | 1,981 | 2,806 | -29 | 2,484 | -20 | 10,194 | 9,109 | 12 | ||
EBITDA margin (%) | 40.6 | 58.9 | 49.6 | 49.0 | 48.4 | |||||
Operating profit | 1,590 | 2,408 | -34 | 2,094 | -24 | 8,642 | 7,634 | 13 | ||
Net Profit | 1,215 | 1,995 | -39 | 1,666 | -27 | 6,821 | 6,101 | 12 | ||
Earnings per share SEK | 1.76 | 2.77 | 2.35 | 9.61 | 8.46 | |||||
Operating cash flow | 727 | 1,763 | 1,873 | 5,685 | 5,216 | |||||
Net Debt / EBITDA (LTM) | 1.0x | 0.9x | 0.8x | 1.0x | 0.9x |
COMMENTS ON THE FINANCIAL STATEMENTS
Summary of the year
Earnings for 2022 were the highest ever for SCA. EBITDA amounted to SEK 10,194m, with an EBITDA margin of 49.0%. The results were achieved through strong demand and high selling prices for SCA’s products and cost control. SCA’s high degree of self-sufficiency in wood, energy and logistics contributes towards stability and good profitability over time. Operating cash flow during the year continued to finance SCA’s strategic capital expenditures. Toward the end of the year, two strategic capital expenditure projects began operating, expanded pulp production at Ortviken in Sundsvall and expanded kraftliner production in Obbola, Umeå. Together with other ongoing strategic capital expenditures, the commissioning of the new production lines will further strengthen the company’s result and cash flow generation in the years ahead.
During 2022, SCA continued to invest in forest land and the company’s holding amounted to 2.7 million hectares at the end of the year. Transaction prices for forest assets continued to increase in 2022 and the total carrying amount of SCA’s forest assets amounted to SEK 97.9bn (84.5) at the end of the year. SCA bases its valuation of forest assets in Sweden on forest transactions in the areas where SCA owns forest. The average market price used in valuation of SCA’s forest assets was SEK 366/m3fo at December 31, 2022, up 13% compared with the preceding year (SEK 324/m3fo). See page 6.
Summary of the fourth quarter
The supply of wood raw material to SCA’s industries was stable during the quarter. The price of pulpwood and sawlogs increased compared with the preceding quarter.
Demand for solid-wood products remained weak in both the building materials trade and for new construction in most regions. Selling prices also declined compared with the preceding quarter on account of the weak demand.
Delivery volumes decreased in the Pulp segment compared with the preceding quarter, mainly related to the planned maintenance stop that was completed at the beginning of the period and a longer unplanned production stop.
Demand for kraftliner declined during the period as a result of lower demand for packaging. The lower demand meant the average selling price for kraftliner was lower than in the preceding quarter.
As a result of the above, earnings for the fourth quarter decreased compared to the preceding quarter and the corresponding quarter in the previous year.
SCA invests in wind power
A significant expansion of wind power is currently taking place in Sweden and demand for green electricity is expected to continue to increase substantially. During the fourth quarter, SCA acquired a wind farm in Markbygden, Piteå Municipality. The wind farm consists of a total of 36 turbines with a total installed capacity of about 85 MW. In addition to sales revenues, the investment will contribute to SCA’s high degree of self-sufficiency in electricity. Approximately 20% of Sweden's installed wind power capacity is currently located on land owned by SCA.
Time: Friday, January 27, 2023 at 10:00 a.m CET.
The press conference will be webcast live at www.sca.com. It is also possible to participate by telephone by calling:
Sweden: +46 (0)8 505 204 04
UK: +44 (0) 33 0551 0200
US: +1 212 999 6659
Specify “SCA”.
For further information, please contact
Andreas Ewertz, CFO, +46 (0)60 19 31 97
Josefine Bonnevier, Investor Relations Director, +46 (0)60 19 33 90
Anders Edholm, SVP Sustainability and Communications, +46 (0)60 19 32 12
Please note:
This is information that SCA is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. This report has been prepared in both Swedish and English versions. In case of variations in the content between the two versions, the Swedish version shall govern. The information was submitted for publication, through the agency of the contact person set out below, on January 27, 2023 at 08:00 a.m. CET. The report has not been reviewed by the company’s auditors.
Anders Edholm, SVP Sustainability and Communications, +46 (0)60 19 32 12