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UPM lowers expectations for 2023

The company expects comparable Ebit in the first half to decline year-over-year, as well as Ebit for the full year 2023 versus 2022

UPM, a Finnish pulp and paper producer, lowered the outlook for its financial performance during the full year 2023, due to reduced inventory in the various product value chains, which continued to delay delivery volumes in most of UPM’s businesses. – which resulted in volumes recovering slower than previously expected.

In this way, the company expects the comparable Ebit in the first half to decrease compared to the previous year, as well as the Ebit for the year 2023 compared to 2022.

In this sense, in addition to the rapid decline in chemical pulp prices, the company has a scheduled maintenance shutdown for the second quarter.

In 2023, UPM delivery volumes are expected to benefit from the ramp-up of the UPM Paso de los Toros pulp mill in Uruguay. As such, the company continues to focus on margin management during short-term volume shortages.

According to the company, many variable cost items have started to decline, as expected, although the cost benefit of lower pulp prices for UPM’s two paper businesses will come with the usual delay.

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