Holmen: Inflation and high costs weigh on results in the first quarter of 2024

The Swedish company recorded an 8% decline in sales to skr 5.7 billion; operating profit and net profit fell by around 45% to skr 944 million and skr 744 million respectively.

Sales in the cardboard and paper division, which emerged from the merger of the cardboard and paper divisions at the end of 2023, fell by a total of 9% to skr 3.66 billion. Operating profit fell by 55% to skr 370 million. The decline in profit is mainly due to lower paper prices and higher costs, as well as the positive impact of income from the sale of surplus electricity in the previous year, according to Holmen

Demand for paper was largely unchanged following a significant decline in the previous year. Paper prices fell slightly. However, prices for both paper and cardboard in the first quarter of 2024 were still higher than before 2022.