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UPM reports solid results for 2023 despite economic challenges

President and CEO Massimo Reynaudo highlights achievements and outlook for the company's future

Massimo Reynaudo, president and CEO of UPM, shared analysis on last year’s results and expectations for the future.

He also highlighted the strength of UPM’s results in 2023, despite a challenging operating environment. He mentioned an initial decline due to destocking and falling prices in European markets, followed by a gradual recovery towards the end of the year. In particular, comparable EBIT for the fourth quarter increased significantly, reaching EUR 323 million, with a margin of 12.8%.

The president pointed out the success in margin management and the implementation of measures to reduce fixed and variable costs, as well as the completion of transformational investments, such as the UPM Paso de los Toros pulp mill in Uruguay and the OL3 nuclear power plant unit in Finland.

Reynaudo also highlighted the performance of UPM Communications Papers and UPM Fibres, as well as challenges in other segments, such as UPM Energy and UPM Plywood. The company continues to make progress on key projects, such as the biochemicals refinery in Leuna, Germany.

Going forward, UPM is expected to maintain a positive trend in its comparable EBIT by 2024, supported by higher delivery volumes and continued optimization of its operations. However, it is anticipated that the first half of 2024 could present challenges due to maintenance activities and energy-related reimbursements in the last quarter of last year.

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