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Sweden's SCA Q3 sales rise 5%, beat analyst estimates

By Reuters News


Overview

  • Sweden forest products firm's Q3 sales rose 5% yr/yr, beating analyst expectations

  • EBITDA was nearly flat yr/yr, EBITDA margin declined slightly

  • Sales growth driven by higher delivery volumes, offset by lower prices and FX effects


Outlook

  • SCA says business environment remains challenging, company continues cost-control measures

  • Company expects high fuel prices to impact Forest and industrial segments, support Renewable Energy

  • SCA sees robust demand for packaging paper in Europe, driven by industry and e-commerce


Result Drivers

  • DELIVERY VOLUMES - Higher delivery volumes supported Q3 sales

  • MAINTENANCE COSTS - Lower cost of planned maintenance stops helped offset lower selling prices and FX effects

  • CONTAINERBOARD MARKET - Stronger market for containerboard and lower raw material costs supported earnings


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Sales

Beat

SEK 5.25 bln

SEK 4.99 bln (9 Analysts)

Q3 EBITDA

SEK 1.63 bln

Q3 EBITDA Margin

31.1%


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 9 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the forest & wood products peer group is "buy"

  • Wall Street's median 12-month price target for Svenska Cellulosa Aktiebolaget SCA is SEK125.00, about 0.6% below its October 22 closing price of SEK125.80

  • The stock recently traded at 29 times the next 12-month earnings vs. a P/E of 24 three months ago


Reuters Recommended Reads

  • Oct 22 - Finland's SRV Q3 revenue rises 28% year-on-year on higher volumes

  • Oct 23 - Sweden's Lifco Q3 sales rise 8.3%, pretax profit tops estimates

  • Oct 22 - Sweden's Essity slightly misses Q3 net sales estimates


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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