Annual Financial Performance
SCA reported an increase in net sales for the full year 2024, reaching SEK 20,232 million compared to SEK 18,081 million in 2023. The sales growth was driven by higher selling prices and increased delivery volumes, supported by the continued ramp-up of commissioned investments.
The company’s EBITDA rose to SEK 7,143 million, up from SEK 6,807 million the previous year. Factors contributing to the increase included higher selling prices, favourable exchange rate effects, and increased delivery volumes. Additionally, a higher harvesting volume in SCA-owned forests mitigated the impact of rising raw material costs. The EBITDA margin stood at 35.3 per cent, slightly lower than the 37.6 per cent reported in 2023.
Operating profit climbed to SEK 5,027 million from SEK 4,857 million, while operating cash flow improved to SEK 3,187 million from SEK 2,985 million. Earnings per share were SEK 5.18, compared to SEK 5.23 in the previous year. The Board of Directors has proposed a dividend of SEK 3.00 per share, an increase from SEK 2.75 in 2023.
Fourth Quarter Performance
In the fourth quarter of 2024, SCA’s net sales rose to SEK 5,135 million from SEK 4,384 million in the same period of 2023, primarily due to higher selling prices. EBITDA for the quarter was SEK 1,649 million, up slightly from SEK 1,635 million in the previous year, with an EBITDA margin of 32.1 per cent compared to 37.3 per cent. Increased costs for raw materials partially offset the benefits of higher selling prices.
Compared to the third quarter of 2024, net sales declined from SEK 5,248 million, mainly due to lower selling prices. EBITDA also dropped from SEK 2,010 million in the preceding quarter, with the EBITDA margin falling from 38.3 per cent to 32.1 per cent. The decline was primarily attributed to increased costs for planned maintenance stops, which rose to SEK 338 million from SEK 122 million in the third quarter.
Market and Operational Insights
Despite a challenging economic environment, SCA maintained a competitive advantage through its well-invested industrial operations and high self-sufficiency in key areas such as wood raw material, energy, and logistics. A planned increase in harvesting from SCA-owned forests helped offset rising global raw material costs, allowing the company to sustain strong earnings.
SCA continued to ramp up production at its strategically expanded facilities, leading to higher delivery volumes. Notably, the new paper machine in Obbola and the CTMP facility at the Ortviken site contributed to this growth. These investments are expected to further enhance productivity and cash flow in the coming years.
The company’s forest asset valuation remained stable at SEK 107.3 billion, slightly down from SEK 107.5 billion in 2023. The valuation, based on forest transactions in SCA’s operating areas, reflected a minor decrease in market prices, which was offset by increased standing volume due to continued net growth.
Market Trends and Outlook
The supply of wood raw material remained stable despite global constraints caused by reduced imports from Russia, pest infestations in Central Europe, and decreased harvesting in Canada. Rising global demand has contributed to increasing prices for sawlogs and pulpwood.
The demand for solid-wood products remained cautious due to economic uncertainties affecting the construction and real estate sectors. Selling prices remained largely unchanged, with Swedish producer stocks at normal levels and customer stocks running low. Meanwhile, pulp prices declined in both Europe and China during the second half of the year but showed signs of recovery in the autumn.
In the packaging materials segment, weak growth in European manufacturing led to a decline in selling prices. Similarly, the market for tall oil and liquid biofuels remained soft due to lower blending requirements in Sweden and increased imports from China, disrupting the market balance. Conversely, the market for solid biofuels remained stable, with seasonally higher delivery volumes in the fourth quarter.
Electricity prices in northern Sweden were low during the last quarter of 2024. SCA continued expanding its wind power leasehold business, with 809 wind turbines operating on its land by year-end, generating an annual capacity of 9.7 TWh – approximately 20 per cent of Sweden’s installed wind power capacity.
Looking ahead, SCA remains focused on leveraging its investments to enhance efficiency and maintain a competitive edge in the global market, despite ongoing economic uncertainties.
