Billerud Sets New Long-Term Targets, Lowers 2024 EBITDA Margin Target To 15%
T-Reuters
02 Dec 2024
Billerud AB (publ) :Decided On New Long-Term Financial Targets And On Strategic Investments In North America.Base Capex Estimated At Sek 2.2 Billion For 2025-2027.New Target: Return On Capital Employed (Roce) >11%.Going Forward We Will Prioritize Profitability Over Growth And Drive Performance.Target To Achieve Ebitda Of Above Sek 6 Billion Through Our Strategic Initiatives.Previous Financial Targets Were Net Sales Growth Of 3-4% Per Year, And Ebitda Margin Of Above 17%.Total Investments In 2024 To Amount To Sek 2.5 Billion.In 2025, Total Investments Are Estimated To Amount To Around Sek 3.4 Billion, Whereof Sek 1.2 Billion Is Strategic Capex.Principles Governing Company'S Indebtedness And Return To Shareholders Remain.As Tight European Wood Market And Elevated Fiber Costs Is A Structural Change, We Revise Ebitda Margin Target From 17% To 15%.Strategic Investment Program Of Approximately Sek 1.2 Billion In Escanaba Mill And Sek 0.2 Billion In Quinnesec Mill.Investments Will Enable Transition Towards Paperboard Production.Upgrade Of Woodyard In Escanaba Is Set To Begin Immediately, With Bulk Of Work Scheduled For Second Half Of 2025.
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