Metsa Group, a Finnish forest industry group, has reported total sales of €3,116 million in the first half of fiscal 2023 (H1 FY23), a decrease from the €3,416 million reported for the same period in the prior year. The operating result also saw a significant reduction, declining to €402 million, compared to €589 million in H1 FY22. When excluding special items, the comparable operating result was €380 million, a decrease from the €574 million reported for H1 FY22.

The company also reported a decline in the result before taxes, posting €389 million for H1 FY23, down from €564 million for the same period the previous year. The comparable result before taxes showed a similar trend, decreasing to €370 million from €550 million, Metsa Group said in a press release.

The comparable return on capital employed, a key indicator of profitability, dropped to 10.7 per cent in H1 FY23 from 18.3 per cent in the same period last year. Furthermore, the net cash flow from operations declined drastically, amounting to just €18 million compared to €456 million in H1 FY22.

The sales for the second quarter (Q2) of fiscal 2023 were reported to be €1,481 million, compared to €1,822 million in Q2 FY22. The operating result for the period was €127 million, a steep drop from the €248 million reported for the same period last year. The comparable operating result for Q2 FY23 was also down at €104 million from €330 million in Q2 FY22.

The result before taxes for Q2 FY23 stood at €119 million, a decline from €235 million in Q2 FY22. Similarly, the comparable result before taxes was €98 million, compared to €317 million in the same period last year.

“As expected, the first quarter and its excellent result were followed by a poorer result in the second quarter. The quarter’s result was weak. The group’s largest business areas—paperboard and pulp—are experiencing a slow business cycle. Tissue and greaseproof papers are consumer products enjoying relatively stable demand, as has been seen during the current economic cycle. Metsa Tissue posted a strong performance,” said president and CEO Ilkka Hamala.