UPM Interim Report Q1 2021:
Market turn and efficiency improvement boost UPM’s earnings – growth projects progress as planned
Q1 2021 highlights
- Sales decreased by 2% to EUR 2,234 million (2,287 million in Q1 2020) mainly due to lower prices of graphic papers and unfavourable changes in currencies
- Comparable EBIT was EUR 279 million, 12.5% of sales (279 million, 12.2%), in line with last year
- Pulp demand continued to be good and pulp prices increased rapidly. Strong markets continued for labelling materials, specialty papers and energy
- Following the timely actions taken in H2 2020 costs were competitive and asset utilisation good
- Operating cash flow increased to EUR 217 million (137 million)
- Strong financial position continues. Net debt was EUR 83 million (-405) and cash funds and unused committed credit facilities totalled EUR 3.2 billion at the end of Q1 2021
- UPM issued a EUR 500 million Green Bond under the EMTN programme in March
- Transformative growth projects proceed on budget and on schedule
- UPM started the basic engineering phase of a next-generation biofuels refinery in January
- UPM joined The Climate Pledge in February, committed to reach the targets of the Paris Agreement 10 years in advance
