UPM Half-Year Financial Report 2020: Q2 impacted by lockdowns, transformative growth projects on track

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Q2 2020 highlights

  • Sales decreased by 20% to EUR 2,077 million (2,605 million in Q2 2019) due to lower deliveries of graphic papers and lower pulp and paper sales prices
  • Comparable EBIT decreased by 41% to EUR 203 million (345 million), and was 9.8% (13.2%) of sales
  • The COVID-19 lockdowns significantly decreased demand for graphic papers
  • Demand for labelling materials and specialty papers increased during the lockdowns
  • Operating cash flow was EUR 156 million (436 million)
  • Closures of UPM Chapelle paper mill and UPM Jyväskylä plywood mill

H1 2020 highlights

  • Sales decreased by 18% to EUR 4,364 million (5,298 million in H1 2019) due to lower deliveries of graphic papers and lower pulp and paper sales prices
  • Comparable EBIT decreased by 33% to EUR 482 million (719 million), and was 11.0% (13.6%) of sales
  • UPM's transformative pulp project in Uruguay and biochemicals project in Germany are well on track with the planned start-up timeline
  • Operating cash flow was EUR 293 million (756 million)
  • Net debt decreased to EUR 301 million (366 million)
  • Cash funds and unused committed credit facilities totalled EUR 2.0 billion at the end of June

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Source: UPM