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BASIC INDUSTRIES: UPM-Kymmene (UPMFH Baa1/BBB+/NR): 2Q24 Results

BASIC INDUSTRIES

Marginal negative for spreads

  • Revenue came in 4% below consensus. Energy and both Papers divisions were soft while Plywood outperformed expectations.
  • Adj. EBITDA missed by 5%, with margins a touch lower than expected.
  • FCF disappointed at €10mn with lower EBITDA, WC change and higher capex all contributing drag. Leverage at 1.6x is marginally higher QoQ. Policy is at or below 2x.
  • Outlook for H2 comparable EBIT - higher than H1 - doesn’t inspire much confidence with consensus 77% above.

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