Finnish packaging firm Stora Enso has posted a 9.3% decline in sales in the fourth quarter of its financial year, to €2.41 billion.
For the full year, the group posted sales of €10.05 billion, down from €10.49 billion a year earlier, citing 'challenging market conditions', including 'significantly lower' pulp prices.
"We have focused on what we can impact: our costs, cash flow and managing value over volume," commented Stora Enso president and CEO Annica Bresky.
"We are satisfied that we were early out with our profit protection programme. It is proceeding ahead of plan and the total implemented cost saving amounted to €150 million in 2019. We will now continue to work on the areas that we can control, to be prepared for a more profitable future when the cycle turns."
Subdued Trading Conditions
Looking ahead to the coming year, Stora Enso said that it anticipates 'subdued and mixed trading conditions caused by geopolitical uncertainties' to impact its performance, while a decline in demand for European paper is likely to persist into the coming year.
Stora Enso said that it plans to continue an active cost management programme through a profit protection programme.
'The fixed and variable cost savings target is €275 million to the end of 2021,' it said.
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.