UPM Interim Report Q1 2020:
Solid Q1 results, UPM well prepared for the current uncertainty and future recovery
Q1 2020 highlights
- Sales decreased by 15% to EUR 2,287 million (2,693 million in Q1 2019) due to lower pulp and paper prices and lower deliveries of graphic papers
- Comparable EBIT decreased by 26% to EUR 279 million (374 million)
- UPM Raflatac and UPM Specialty Papers achieved record comparable EBIT
- The industry-wide strike in Finland affected UPM's pulp and paper businesses for two weeks and timber and plywood businesses for four weeks
- The COVID-19 pandemic did not materially impact UPM's operations in Q1 2020
- UPM implemented extensive precautions to protect the health and safety of its employees and to ensure business continuity and progress of strategic projects during the pandemic
- UPM is planning to use shift arrangements, temporary layoffs, or reduced working hours as required to adjust its operations in different scenarios
- UPM's transformative pulp project in Uruguay and biochemicals project in Germany are proceeding in line with the planned start-up timeline
- Operating cash flow was EUR 137 million (320 million), as working capital increased seasonally
- Net debt decreased to EUR -405 million (-5 million)
- Cash funds and unused committed credit facilities totalled EUR 2.2 billion at the end of March
- AGM was held as scheduled with special precautions on 31 March and the dividend of EUR 1.30 per share was paid on 16 April
