Paper and packaging firm Stora Enso has announced weaker-than-expected quarterly earnings, as logistics bottlenecks dented profitability.
"Demand has been robust for our main segments but logistical challenges with low long haul vessel reliability and poor container availability has had an impact on our ability to fully serve our customers," chief executive Annika Bresky said in a statement.
Second-quarter sales rose 18% to €3.05 billion, while analysts had estimated revenue to be €2.98 billion.
The pulp, paper and cardboard maker, which recently completed its exit from Russia, said its April-June comparable operating profit rose 39% to €505 million, missing the €565 million mean estimate of seven analysts polled by Refinitiv.
Stora Enso in June raised its full-year earnings guidance and said it now expects 2022 operating profit to exceed last year's €1.53 billion.
'Global megatrends such as an increased awareness of sustainability, an accelerated focus on combatting climate change, and digitalisation underpin Stora Enso’s business strategy and the demand for its renewable and eco-friendly products, both short and long term,' the group said in a statement.
Elsewhere, Stora Enso and Swedish battery maker Northvolt have announced plans to develop batteries from forestry byproduct lignin.
A part of wood that binds tree fibers together, lignin accounts for 20-30% of a tree and used to be burned for energy. After years of research and development, it could be turned into new products by forestry giants letting go of paper.
"Our lignin-based hard carbon...will secure the strategic European supply of anode raw material," head of Stora's biomaterials unit Johanna Hagelberg said in a statement outlining a development agreement between the companies.
Northvolt in February bought an old Swedish paper mill from Stora to turn it into a cathode material factory by late 2024 with an annual production capacity of over 100 gigawatt hours.
News by Reuters, edited by by ESM – your source for the latest packaging news. Click subscribe to sign up to ESM: European Supermarket Magazine.