Stora Enso sets ‘ambitious’ financial targets

Stora Enso has defined financial targets for each of its divisions, Consumer Board, Packaging Solutions, Biomaterials, Wood Products and Paper, intended to support the group in attaining its strategic goal.

The company said the targets will enable the markets to better follow each division’s performance, while guiding the divisions in the implementation of the group’s strategy

The company said the targets will enable the markets to better follow each division’s performance, while guiding the divisions in the implementation of the group’s strategy as it transforms from a traditional paper and board producer into a customer-focused renewable materials company.

The key divisional financial target is the return on operating capital (ROOC) percentage, although the Paper division has a target based on free cash flow to net sales percentage as its focuses on the division’s cash flow generation.

The Consumer Board division has a target ROOC percentage of more than 20 percent, as does the Packaging Solutions division. The Biomaterials ROOC percentage target is more than 15 percent, while it is more than 18 percent for Wood Products.

‘The targets are defined to be ambitious but reachable within a five-year planning horizon,' Stora Enso said.

The net sales growth target for the group as a whole has been set as being ‘faster than the relevant market’.

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