HELSINKI, Feb. 5 (Xinhua) -- Finland-based forestry giant United Paper Mills (UPM) reported a profit of 1.2 billion euros (1.25 billion U.S. dollars) in 2024, marking a 21 percent increase from the previous year, the company said on Wednesday.
However, annual sales for 2024 declined by 1 percent to 10.4 billion euros.
Massimo Reynaudo, Chief Executive Officer (CEO) of UPM, attributed the improved performance to the company's new pulp mill in Uruguay and increased sales volumes in advanced materials. However, he noted that "the wood market in Finland continued to be structurally tight, keeping wood costs high and availability limited."
According to Finnish business daily Kauppalehti, Finland's forestry sector has struggled with a challenging market environment for the past few years, and the outlook remains uncertain. The decline in global pulp prices last autumn, coupled with high raw wood purchase costs, has weighed on companies operating in Finland.
The loss of wood imports from Russia in recent years has also forced companies to rely on more expensive Finnish wood, increasing production costs, Kauppalehti reported. It also reported that there are only weak signs of recovery in the Finnish forestry sector, citing slow economic growth in Europe, cautious consumer behavior, and a lack of increased demand from construction and industrial sectors. (1 euro = 1.04 U.S. dollar)
