Stora Enso reports significant profit rise in Finland’s second quarter

On Wednesday morning, the Finnish forestry company Stora Enso released its quarterly financial report, showcasing a significant improvement in its performance for the second quarter compared to last year’s low benchmarks. Adjusted operating profit rose to €161 million, a notable increase from €37 million a year prior. However, revenue decreased by three percent, amounting to approximately €2.3 billion.

Stora Enso anticipates a gradual recovery in market conditions throughout the year and expects its full-year results to be significantly better than those of the previous year. CEO Hans Sohlström remarked that it is encouraging to see the company’s second-quarter results meet expectations, reinforcing the revised guidance updated in May.

Sohlström added that the progress in initiatives aimed at improving profitability and cash flow, along with favorable market conditions in certain segments, has positively influenced earnings for three consecutive quarters.

In related news, the OP Financial Group reported a one-fifth increase in operating profit for April to June, totaling €611 million. The net interest income reached €698 million, representing an 11 percent rise from the previous year. Timo Ritakallio, CEO of OP, noted that the bottom of the economic downturn in Finland appears to be behind, with expectations of improvement in the latter half of the year driven by increases in both export and consumer demand.

However, net fee income fell compared to the same period last year, as reported on July 24.