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Investing.com -- SCA’s first-quarter 2025 results on Friday posted strong sales growth, with net sales rising 13% year-over-year to SEK 5.16 billion.
This increase was driven by higher prices and delivery volumes in both wood products and pulp. Operating profit grew 4% to SEK 1.12 billion, while EBITDA climbed 3% to SEK 1.65 billion.
However, the EBITDA margin contracted to 32%, compared to 35% in the same period last year. Earnings per share saw a modest increase, rising to SEK 1.14 from SEK 1.12.
Despite these positive figures, operating cash flow fell to SEK 485 million, down from SEK 677 million in the prior year.
The decline was largely due to a SEK 850 million outflow related to changes in working capital, sending its shares down over 2%.
SCA’s Forest segment saw a 15% increase in sales, reaching SEK 2.49 billion. This segment’s EBITDA, however, declined 9%, primarily as a result of a property sale in the previous year.
Due to higher volumes and prices, Wood’s sales increased by 37%, reaching SEK 1.50 billion, with EBITDA more than doubling to SEK 236 million.
In the Pulp segment, net sales rose 9% to SEK 1.94 billion, while EBITDA remained stable at SEK 320 million.
The Containerboard business also showed positive results, with sales rising 2% to SEK 1.67 billion and EBITDA surging by 70% to SEK 239 million.
On the other hand, the Renewable Energy segment faced challenges, with revenue declining 5% to SEK 603 million and EBITDA falling 24%, attributed to lower selling prices and higher costs.
SCA’s net debt remained unchanged at SEK 10.99 billion, and the debt-to-EBITDA ratio held steady at 1.5.
The company also reported a higher tax expense of SEK 205 million, lifting the effective tax rate to 20.4%, up from 17.4% last year.
SCA noted that rising raw material costs and trade uncertainty will continue to pressure the business. With no planned maintenance stops during the quarter, the company continued its ramp-ups related to recent investments.