UPM recently released its Q3 2022 report. Sales prices increased in all business areas and more than offset the negative impact of higher variable costs.
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%)
Jussi Pesonen, President and CEO, comments on the Q3 results:
“UPM reached all-time high quarterly results in Q3. The strength of our operating model was on full display as we simultaneously delivered record quarterly results in UPM Communication Papers, UPM Specialty Papers, UPM Raflatac, UPM Energy and UPM Biofuels. UPM Fibres and UPM Plywood achieved strong results, too. All in all, Q3 was a great success considering the highly uncertain and volatile business environment.
Good demand continued in most of our businesses, and sales prices more than offset the impact of continued increases in variable costs. Delivery volumes were back to normal after the exceptional H1 and operational efficiency was on a good level. No major downside risks materialised during the quarter.
Our sales grew by 36% to EUR 3,420 million (Q3 2021: 2,523 million), and comparable EBIT grew by 84% to EUR 779 million (424 million). As in the previous quarter, cash flows related to energy hedges affected operating cash flow significantly, resulting in an operating cash flow of EUR -201 million. Due to the nature of our hedging, this cash flow is expected to reverse in the future.
Our financial position remains strong, with cash funds and unused committed credit facilities totalling EUR 5.2 billion at the end of Q3. Net debt to EBITDA ratio was on a healthy level at 1.39. This gives us a solid base to navigate the unpredictable operating environment.”