Rottneros: A quarter to forget - ABG

Q4: Clean EBIT of SEK -100m
Pulp prices up and demand better
Fair value range: SEK 9-16/sh


Q4: Figures below expectations

Q4 clean EBIT was SEK -100m, below ABGSCe of SEK -20m. The miss was mainly driven by lower pulp prices and higher costs. Pulp prices are on the rise, however, and we believe higher pulp prices will add SEK 35-45m q-o-q in Q1. Costs are expected to stay elevated as pulpwood prices are still on the rise, but access to wood is adequate on a stable Swedish market balance (Baltic sourcing in Q1 likely similar to Q4). However, less maintenance and higher volumes will more than offset the negative effects. Our q-o-q bridge points to clean EBIT of SEK 5-20m.

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/rottneros/Equity-research/2024/2/rottneros---a-quarter-to-forget/