One of Europe’s forest giants, Metsä Group, has endured a challenging ride, revealing that “2024 was an exceptionally weak year financially.” That is according to Ilkka Hämälä, Metsä’s outgoing President and CEO, who revealed that the group operating profit fell to €203 million, a drop of 58% from €488 million in 2023:
“Demand in main markets have been subdued in all product groups, except for tissue and cooking papers and Kerto® LVL,” Mr Hämälä said in the forward to the Financial Statements Bulletin: “At the beginning of the year, political strikes caused a loss of €60 million. The effects of higher raw material and logistics costs could not be passed on to product prices, as demand was weak.”
“Major development investments in recent years have significantly increased depreciation. The positive effects of new capacity on profits have not materialised in the sawmill, pulp and paperboard industries due to start-up of production and weak demand.”
Ilkka Hämälä, Metsä’s outgoing President and CEO
The statements, which are available to review on the Metsä website, reveal that total sales for 2024 declined by 6% – from €6.11 billion to €5.75 billion – whilst cash flow from operations also dropped by €11 million for the year, from €926 million to €915 million: “The overall situation for the mechanical forest industry has been weak due to the continuing recession in the construction industry and high wood prices,” Mr Hämälä said. “We had to significantly curtail sawn timber production for demand and profitability reasons in 2024.”
Meanwhile, Metsä Fibre’s Kemi bioproduct mill – which suffered a major gas explosion last year – is expected to return to full capacity later this year: “The negative impact on the operating result from the gas explosion at the Kemi bioproduct mill is estimated at EUR 100 million,” the report said, adding that “the comparable operating result includes EUR 82.5 million in insurance compensations for the gas explosion.”
New President and CEO from July 1st 2025
The financial results come days after Jussi Vanhanen was appointed the new Metsäliitto Cooperative CEO. Serving as the President and CEO of Metsä from July, Mr Vanhanen will work with Mr Hämälä, who will retire later this year.
“I am grateful for this vote of confidence,” Mr Vanhanen said. “Metsä Group is a great company with strong operating principles, a clear direction and committed and competent employees. I look forward to working closely with all employees to further develop the company and strengthen its position in the global markets.”
Mr Hämälä – who will act as a mentor before retiring in October 2025 – has played a key role in driving the growth and development of Metsä, according to Jussi Linnaranta, chair of the Metsäliitto Cooperative: “During his time as President and CEO, significant development investments have been made, the largest being the construction of the Kemi bio-products mill.”
