Stora Enso, a global provider of renewable solutions in packaging, biomaterials, and wood products, has revealed non-cash impairments amounting to approximately €514m ($553.96m as of today) in its IFRS operating result for the fourth quarter (Q4) of 2023.
These impairments, categorised as items affecting comparability, are expected to have a net result impact of approximately €449m in the negative, including an estimated positive tax effect of €65m.
Allocation of impairment charges among segments
The impairment charges have been allocated among Stora Enso’s business segments as follows:
Packaging Materials:
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData- Goodwill: €26m.
- Fixed assets: €355m.
- Total: €381m.
Biomaterials:
See Also:
- Goodwill: €45m.
- Fixed assets: €58m.
- Total: €103m.
Wood Products:
- Fixed assets: €15m.
Other:
- Fixed assets: €15m.
- Total: €15m.
The fixed asset impairments in the Packaging Materials division primarily pertain to the Containerboard segment while in the Biomaterials division, they are associated with the Nordic production units.
Stora Enso attributes these impairments largely to its revised projections, indicating a more subdued outlook compared to previous estimates.
Impact and future outlook
As a consequence of these impairment bookings, Stora Enso anticipates a reduction of approximately €40m in annual depreciation going forward.
However, it’s important to note that these impairments do not affect Stora Enso’s full-year 2023 guidance.
The company remains committed to providing renewable solutions and, despite this financial adjustment, continues its operations in the packaging, biomaterials, and wood products sectors.