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UPM-Kymmene (Baa1/BBB+ Pos): 1Q24 Results

BASIC INDUSTRIES

Earnings came in ahead of consensus. Small positive for spreads.


• EBIT decreased 6% to EUR 333 mm (vs 269 mm cons). Sales decreased 5% to EUR 2,640 mm as expected.

• Market is focusing on upbeat messaging regarding the new Paso de los Toros Eucalyptus pulp mill in Uruguay.

• UPM achieved AA rating for Transparency by CDP.

• Net Debt to EBITDA 1.46x (0.82x), an improvement from 1.55x 4Q23.

• Customer destocking in 2023 is seen as being over.

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