Svenska Cellulosa SCA AB
XBER:SCA
Svenska Cellulosa SCA AB
Svenska Cellulosa SCA AB, a name synonymous with sustainable forestry and innovation, traces its roots back to 1929 when it was established in Sweden. What began as a modest focus on forest products evolved dramatically over the decades. Today, SCA stands as a leading player in the forest products industry, boasting extensive forest holdings, primarily concentrated in Northern Europe. The cornerstone of its operations is its vast forest estate, which serves as both a critical resource and a sustainable asset. SCA intricately balances its dedication to environmental stewardship with profitable business operations by applying advanced forest management techniques. These methods not only ensure the sustainable yield of raw materials but also augment the forest’s growth, contributing positively to carbon sequestration.
At the heart of SCA's revenue-generating mechanism is its integrated value chain which encompasses forestry, sawmills, wood, pulp, paper, and renewable energy production. This seamless chain allows SCA to maximize the utility of each tree, producing a diverse range of products that meet the needs of various industries including packaging, print media, and hygiene products. Beyond its traditional market offerings, SCA also leverages its forest assets for renewable energy production, tapping into biofuels and wind power, thus diversifying its income streams while aligning with global shifts toward eco-friendly energy solutions. By intertwining sustainable practices with innovative production strategies, SCA not only strengthens its profitability but also ensures its commitment to long-term environmental and economic sustainability.
Svenska Cellulosa SCA AB, a name synonymous with sustainable forestry and innovation, traces its roots back to 1929 when it was established in Sweden. What began as a modest focus on forest products evolved dramatically over the decades. Today, SCA stands as a leading player in the forest products industry, boasting extensive forest holdings, primarily concentrated in Northern Europe. The cornerstone of its operations is its vast forest estate, which serves as both a critical resource and a sustainable asset. SCA intricately balances its dedication to environmental stewardship with profitable business operations by applying advanced forest management techniques. These methods not only ensure the sustainable yield of raw materials but also augment the forest’s growth, contributing positively to carbon sequestration.
At the heart of SCA's revenue-generating mechanism is its integrated value chain which encompasses forestry, sawmills, wood, pulp, paper, and renewable energy production. This seamless chain allows SCA to maximize the utility of each tree, producing a diverse range of products that meet the needs of various industries including packaging, print media, and hygiene products. Beyond its traditional market offerings, SCA also leverages its forest assets for renewable energy production, tapping into biofuels and wind power, thus diversifying its income streams while aligning with global shifts toward eco-friendly energy solutions. By intertwining sustainable practices with innovative production strategies, SCA not only strengthens its profitability but also ensures its commitment to long-term environmental and economic sustainability.
Solid Profitability: SCA delivered strong profitability in Q1 2025 with EBITDA of SEK 1.65 billion and a 32% EBITDA margin, despite a challenging environment and higher raw material costs.
Revenue Growth: Net sales rose 13% year-on-year to just below SEK 5.2 billion, supported by higher prices and strong delivery volumes across most segments.
Price Increases: SCA implemented price increases in most product areas, largely to offset cost pressures, with further increases planned in Q2.
Cost Pressures: The company faced significantly higher wood raw material costs but was able to mitigate much of the impact due to its self-sufficiency.
Tariff and Currency Headwinds: Management is monitoring the impact of US tariffs and currency movements, with pulp exports to the US facing a 10% tariff and negative effects from a stronger Swedish krona.
Segment Variability: The Wood segment saw the strongest growth in sales and profitability, while Renewable Energy remained weak due to low electricity prices and biofuel market challenges.
Strategic Investments: Ramp-up of major investments in Obbola, Ortviken, and Gothenburg contributed to volume growth and are expected to further boost productivity and cash flow.
