UPM Interim Report Q3 2022: UPM delivers all-time high quarterly results with excellent performance in all businesses
Q3 2022 highlights
- Sales increased by 36% to EUR 3,420 million (2,523 million in Q3 2021)
- Comparable EBIT grew by 84% to EUR 779 million, 22.8% of sales (424 million, 16.8%)
- Operating cash flow was EUR -201 million (318 million), impacted by cash flow from energy hedges. Other operating cash flows were largely as expected
- The rise in energy futures prices continued, causing short-term cash outflow impact from energy hedges. Respectively, it indicates the strong earnings potential of UPM Energy
- Sales prices increased in all business areas and more than offset the negative impact of higher variable costs
- Cash funds and unused committed credit facilities totalled EUR 5.2 billion at the end of Q3 2022. UPM signed EUR 4.3 billion of credit facilities during Q3
- In August, EcoVadis recognised UPM on Platinum level based on the company’s sustainability performance
- In September, UPM Raflatac completed the acquisition of AMC AG
- In October, the new deep sea pulp terminal in the port of Montevideo in Uruguay was inaugurated
Q1 - Q3 2022 highlights
- Sales increased by 19% to EUR 8,489 million (7,141 million in Q1–Q3 2021)
- Comparable EBIT increased by 43% to EUR 1,443 million (1,010 million), and was 17.0% (14.1%) of sales
- Operating cash flow was EUR -1,068 million (844 million), impacted by cash flows from energy hedges in the highly exceptional energy markets
- Net debt increased to EUR 3,133 million (667 million) and the net debt to EBITDA ratio was 1.39 (0.38). A significant part of the increase in net debt is temporary, due to the cash flow impacts of energy hedges and future energy generation
- UPM decided to suspend its deliveries to Russia, the purchasing of wood in Russia and the UPM Chudovo plywood mill operations
- The strike in Finland affected production and delivery volumes in the early part of the year. Estimated full-year earnings impact is not material
- In April, UPM and the Paperworkers’ Union agreed on the first-ever business-specific collective labour agreements
- In June, UPM announced the sale of the Steyrermühl site in Austria to secure competitiveness and adapt newsprint production to long-term market development
