UPM-Kymmene Oyj's Financial Results Show Decline in Key Areas, Infinhub Gives 'Sell' Call

Jul 25 2023 12:00 AM IST
UPM-Kymmene Oyj, a leading player in the pulp and paper industry, has shown a decline in key financial areas for the quarter ending September 2023. The company's profit before tax and after tax have decreased significantly, while net sales and operating cash flow have also declined. Despite this, the company has a strong track record, but Infinhub has given a 'Sell' call for its stock based on the recent financial results.



Despite facing some challenges in the recent quarter, UPM-Kymmene Oyj remains a strong player in the pulp and paper industry. The company's inventory turnover ratio has been consistently increasing, indicating efficient management of inventory and faster sales. However, the financial results for the quarter ending September 2023 have shown a decline in key areas.

The company's profit before tax (PBT) has fallen by 54.4% compared to the previous four periods, while the profit after tax (PAT) has also decreased by 38.3%. This trend is a cause for concern in the near term. Additionally, the net sales for the quarter have also decreased by 13.8% compared to the average of the previous four periods.

UPM-Kymmene Oyj's operating cash flow for the year has also been the lowest in the last three years, indicating a decline in cash revenues from business operations. The earnings per share (EPS) for the quarter have also been the lowest in the last five periods, showing a decline in profitability and lower earnings for shareholders.

Despite these challenges, the company remains a strong player in the industry with a solid track record. However, based on the financial results for the quarter ending September 2023, Infinhub has given a 'Sell' call for UPM-Kymmene Oyj's stock. Investors should carefully consider these factors before making any investment decisions.

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UPM-Kymmene Oyj
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