UPM interim report Q1 2023: Solid Q1 result underpinned by strong margins, two transformative projects completed
Q1 2023 highlights
- Sales increased by 11% to EUR 2,787 million (2,507 million in Q1 2022)
- Comparable EBIT grew by 29% to EUR 356 million, 12.8% of sales (277 million, 11.0%)
- Delivery volumes were impacted by destocking in various product value chains
- Successful margin management
- Operating cash flow was EUR 714 million (12 million), supported by cash inflow from energy hedges
- Net debt increased to EUR 2,167 million (837 million) and the net debt to EBITDA ratio was 0.82 (0.46)
- Cash funds and unused committed credit facilities totalled EUR 6.7 billion at the end of Q1 2023
- UPM Paso de los Toros pulp mill in Uruguay started up production on 15 April
- The OL3 nuclear power plant unit began regular electricity production on 16 April and Teollisuuden Voima Oyj (TVO) submitted to the OL3 plant supplier the Provisional Takeover Certificate on 20 April
- UPM finalised its full exit from Russia
- UPM announced a plan to permanently close paper machine 6 at UPM Schongau in Germany and to accelerate the earlier announced stop of production at the Steyrermühl mill in Austria by the end of Q2 2023
