SCA's 4Q 2020 net sales increased 7% and amounted to SEK 4,592 million ($553 million). The increase was mainly attributable to higher delivery volumes of pulp and kraftliner and better sales in segment Wood. Lower selling prices for kraftliner and publication paper and negative exchange rate effects had an adverse impact on net sales.
4Q 2020 adjusted EBITDA increased to SEK 1,377 million ($166 million), corresponding to an EBITDA margin of 30%. The increase was mainly attributable to a higher revaluation of biological assets, lower raw material costs and lower costs for planned maintenance stops of SEK 130 million ($15.6 million).
4Q 2020 adjusted operating profit amounted to SEK 986 million ($118.8 million).
Ulf Larsson, President and CEO of SCA, said: “The year and the 4Q were impacted by material one-off items related to the discontinuation of publication paper operations. Adjusted earnings in the 4Q improved compared with the preceding quarter and the year-earlier quarter. A higher share of harvesting from SCA-owned forest and higher earnings from the revaluation of biological assets due to the new forest survey and harvesting plan had a positive impact on earnings. The supply of wood to SCA’s industries was stable during the quarter. The price of sawlogs remained stable while the price of pulpwood fell slightly.”
SCA's FY 2020 net sales amounted to SEK 18,410 million ($2.2 billion), a decrease of 6%, of which price/mix accounted for -8%, volume for 2%, currency for 1% and divestments for -1%. The decrease was mainly related to lower selling prices in all segments and lower delivery volumes in publication paper, which were offset by higher delivery volumes in other product categories.
2020 EBITDA decreased to SEK 3,393 million ($409 million), mainly related to two material one-off items, a negative earnings impact from the discontinuation of publication paper operations of SEK -1,047 million ($126 million) and a positive earnings impact of approximately SEK 16 billion ($1.9 billion) from the changed accounting method for the valuation of forest assets in 2019.
2020 Adjusted EBITDA amounted to SEK 4,440 million ($535 million), corresponding to an EBITDA margin of 24.1%. The decline was primarily due to lower selling prices in all segments and lower delivery volumes for publication paper, offset by a higher share of harvesting from SCA-owned forest, higher earnings from the revaluation of biological assets and lower raw material costs. The cost of planned maintenance stops amounted to SEK 260 million ($31.3 million).
The core of SCA’s business is the forest, Europe’s largest private forest holding. The company offers paper for packaging and print, pulp, wood products, renewable energy, services for forest owners.