Description

HOLMBS.XD Initiation of Coverage: Resilient, Ruthless, Ready — Can It Outpace Global Paper Giants?

Holmen Group’s interim report indicates several nuanced aspects of their performance and market conditions that warrant careful analysis for investment consideration. The report delivered by CEO Henrik Sjölund and newly returned CFO Stefan Lorehn outlines both positive achievements and market challenges faced by the company. Positively, Holmen demonstrated a robust financial position in the first quarter with a 20% return on capital employed across their Board and Paper and Wood Products divisions. Following the distribution of a SEK 1.9 billion dividend, the company’s net debt stands at approximately 10% of equity, indicating a strong balance sheet. The Board and Paper division recorded strong performance, benefiting from stable pricing and efficient production, despite a weak demand environment. The Forest division reported a SEK 487 million operating profit, even as internal harvesting challenges were mitigated by price increases in the wood market.

Our Report Structure:

⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures

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