A return of profits to pre-pandemic levels was recorded in the 2021 balance sheet. The Finnish paper group UPM was confident about 2022 and estimated that "2022 should be another good year for the company." A prediction that became reality as the release of the 2022 fiscal year statements confirms record results.
+ 42% increase in earnings over 2022
Sales for the full year increased by 19% compared to 2021, from 9,814 million to 11,720 million euros with a fourth quarter " excellent" up 21%.
Sales increased in UPM Communication Papers, UPM Raflatac, UPM Energy, UPM Specialty Papers and UPM Plywood and decreased in UPM Fibres.
This quarter is even "the second best quarter ever for the company" says Jussi Pesonen, President and CEO of UPM.
Earnings before interest and taxes (on a comparable basis) have increased by 42% to 2,096 million euro in 2022 (compared with 1,471 in the previous year). It will represent 17.9% of revenues instead of 15% in 2021.
Sales prices increased significantly in all business areas, with the greatest impact on UPM's communication papers.
For Jussi Pesonen, it is "a very solid financial situation" thanks to " unprecedented annual sales and profits".
A look back at the highlights of 2022
The Finnish group has returned to the major events of the year. It recalls that it has suspended its deliveries, the purchase of wood as well as the activity of its factory in Russia.
After 112 days on strike in the spring of 2022, the agreement on the first specific collective labor agreements was reached.
June was the month of the sale of the Steyrermühl site in Austria and the month of September for the uPM Raflatac acquires Advanced Methods of Coating (AMC) .
Investment projects in Uruguay are nearing completion. The Montevideo pulp site was inaugurated last October and construction of the Paso de los Toro mill has just been completed, with production scheduled to start by the end of the first quarter.
2023, a solid year ahead
UPM, in view of the record profits for 2022, believes that " 2023 should be another year of strong financial performance. UPM's comparable operating income is expected to increase in the first half of 2023 compared to the first half of 2022."
However, caution is still called for. UPM points out that there are many positive and negative factors to consider: the European, global and Chinese economies, the Russia/Ukraine conflict, the continuing effects of the pandemic, energy costs, related regulations in Europe and the upcoming commissioning of the Olkiluoto nuclear power plant in western Finland.
