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Investing.com -- Shares of Svenska Cellulosa Aktiebolaget (ST:SCAb) (SCA) rose over 2% on Friday following its fourth-quarter results, which showed an increase in sales and earnings before interest, taxes, depreciation, and amortization (EBITDA), which was aided by higher selling prices and increased delivery volumes.
SCA reported that net sales for the fourth quarter of 2024 rose to SEK 5,135 million, up 17% from SEK 4,384 million in the same period last year.
The company attributed the growth primarily to higher selling prices, which accounted for most of the increase, along with positive currency effects and slightly higher volumes.
Over the full year, SCA’s net sales reached SEK 20,232 million, marking a 12% increase compared to 2023.
EBITDA for the fourth quarter amounted to SEK 1,649 million, up slightly from SEK 1,635 million in the prior-year period.
The EBITDA margin stood at 32.1%, down from 37.3% a year earlier, as rising raw material costs partially offset gains from higher selling prices.
For the full year, EBITDA grew 5% to SEK 7,143 million, while the EBITDA margin declined to 35.3% from 37.6%.
Operating profit for the quarter stood at SEK 1,113 million, nearly unchanged from SEK 1,119 million in the same period last year.
Net profit declined slightly to SEK 820 million from SEK 833 million in the previous year’s fourth quarter.
However, for the full year, operating profit increased by 4% to SEK 5,027 million, reflecting a strong overall performance.
SCA offset rising wood costs by harvesting more timber from its own forests. This helped reduce the impact of higher material costs on its industrial operations.
Increased production, partly due to new facilities like the Obbola paper machine and the Ortviken CTMP plant, also led to higher sales volumes.
While SCA saw steady demand for its products, the European manufacturing slowdown did impact packaging material sales, resulting in lower prices.
Pulp prices decreased during the quarter, though they began to rebound in major markets, including China, towards the end of the year.
The company’s board proposed a dividend of SEK 3.00 per share, up from SEK 2.75 last year, due to its strong financial performance. Operating cash flow rose to SEK 3,187 million from SEK 2,985 million, thanks to higher earnings and controlled capital expenditures.