UPM announced a significant improvement in its financial performance for the second quarter of 2024, with a 60% increase in comparable EBIT compared to the previous year. This rise was attributed to a moderate recovery in product markets and enhanced output from the UPM Paso de los Toros pulp mill in Uruguay, which reached full production capacity.
Despite these gains, the quarter was impacted by extensive maintenance activities at UPM’s pulp mills and nuclear power plant units. These shutdowns were successful, positioning UPM’s assets for optimal performance in the latter half of the year.
Key financial highlights for Q2 include sales of EUR 2,546 million and a comparable EBIT of EUR 182 million. Operating cash flow was EUR 204 million, with net debt slightly increasing to EUR 2,763 million. Additionally, UPM paid the first installment of dividends for the previous financial year, totaling EUR 400 million.
In UPM Fibres, robust demand and rising prices for pulp marked a successful quarter. The UPM Paso de los Toros mill reached its nominal capacity for a full month prior to its first maintenance shutdown in June. Maintenance activities also took place at other pulp mills in Uruguay and at UPM Pietarsaari in Finland.
UPM Specialty Papers performed well despite higher pulp prices, while UPM Raflatac saw a recovery in global demand for self-adhesive label materials. Both businesses benefitted from effective margin management strategies.
Conversely, UPM Communication Papers faced challenges with decreased profitability due to lower delivery volumes and political strikes in Finland. Fiber cost increases outpaced price adjustments, and UPM announced plans to close the Hürth newsprint mill in Germany and shut down one fine paper machine at Nordland Papier. Focus for the second half of the year will be on tight margin management and productivity improvements.
During Q2, UPM finalized five new business-specific collective labor agreements in Finland, supporting long-term competitiveness and customer service. Looking ahead, the company anticipates strong performance and improving results in the second half of the year, driven by increased pulp deliveries and a competitive business portfolio in expanding markets.
