UPM has published its financial results for 2024, revealing a 1% drop in sales to ?10.3 billion, but a 21% increase in comparable EBIT to ?1.2 billion. The Finnish forestry and paper group, which employs over 16,000 people in six business sectors, succeeded in improving its margins, despite a slowdown in the second half of the year.
Cost optimization and industrial restructuring
Faced with a fluctuating market environment, UPM has implemented a policy of reducing fixed costs, resulting in savings of 103 million euros by 2024.
Visit closure of the Hürth paper mill in Germany and the sale of the Steyrermühl site in Austria . At the same time, UPM Raflatac strengthened its presence in the graphics solutions market with the acquisition of Grafityp in Belgium.
Production dynamics and sector performance
The UPM Paso de los Toros pulp mill in Uruguay reached full production, contributing to an increase in renewable fiber deliveries. However, low pulp prices limited the impact on results.
For UPM raflatac (label materials), UPM Specialty Papers and UPM Plywood, delivery volumes continued to improve slowly. On the other hand, the graphic paper markets (UPM Communication Papers) normalized, resulting in lower deliveries.
UPM Energy benefited from higher electricity prices in the last quarter, while UPM Biofuels was impacted by a slowdown in the renewable fuels market.
Strategic positioning for 2025
The year 2025 begins with a diversified portfolio and a determination to accelerate growth in key segments. The Uruguayan pulp mill is set to increase production by 300,000 tonnes, optimizing the competitiveness of the South American platform.
In Finland, UPM is seeking to optimize its operations in a context of high wood costs.
In advanced materials, UPM Raflatac's acquisition strategy, with the acquisition of the English company Metamark (announced today) and UPM Specialty Papers, aims to strengthen their presence in high-growth markets. Restructuring the product portfolio and optimizing production should improve profitability.
Finally, in decarbonization solutions, UPM Biochemicals is enjoying growing commercial interest, notably through customer agreements confirming the attractiveness of its products.
