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BASIC INDUSTRIES: Stora (STERV Baa3/NR/BBB-): 2Q24 Results

BASIC INDUSTRIES

Neutral for spreads, largely in-line and no change to guidance.

  • Revenue missed consensus by 2.5%, which seems to be driven by capacity closures. Continued operations grew by 1%.
  • Adj. EBITDA was in line with expectations with cost savings helping margins.
  • Cash flow (€86mn) was helped by WC improvement. Leverage improved from 4x to 3.5x on the quarter. Long term target is below 2x.
  • EBIT guidance was raised in May and remains at “significantly higher” YoY.
  • Webcast replay: https://stora-enso-oyj-q2-earnings-presentation-2024.open-exchange.net/registration

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