UPM’s Pulp Deliveries Rise to 1.43 Million Tonnes in Q1 2025 as Demand Grows in China
UPM’s pulp deliveries reached 1.43 million tonnes in the first quarter of 2025, up from 1.19 million tonnes in the previous quarter and the same period last year. The growth was driven by rising demand in China and stable conditions in other major markets. Meanwhile, UPM’s Communication Papers deliveries dropped to 731,000 tonnes from 879,000 tonnes in Q1 2024 as European graphic paper demand declined 8%. These figures are based on the company’s latest interim report.
At the group level, UPM reported sales of EUR2.65 billion, nearly unchanged from EUR2.64 billion in Q1 2024. Comparable EBIT declined 14% to EUR287 million, representing 10.8% of sales. Operating profit was EUR198 million, down from EUR354 million a year earlier, and net profit fell to EUR143 million from EUR279 million. Operating cash flow decreased to EUR289 million from EUR335 million.
In UPM Fibres, Uruguay’s fully operational pulp and logistics infrastructure continued to reduce production costs. Finnish mills remained profitable despite high wood prices. The euro-denominated average price for UPM pulp deliveries decreased 3% year-on-year.
Specialty Papers reported stable deliveries at 368,000 tonnes, supported by strong demand for labeling and packaging papers. Sales prices for specialty grades increased slightly, while fine paper prices in Asia-Pacific fell modestly.
Plywood deliveries rose to 120,000m3 from 110,000m3 in Q1 2024. Despite a five-week strike at Finnish mills, overall output remained largely unaffected. Demand for birch plywood used in LNG remained strong.
In energy, UPM delivered 2,743 GWh of electricity, down from 2,945 GWh in Q1 2024. Its average sales price dropped by 15% to EUR56.8/MWh. Mild winter weather and high hydro reservoir levels muted the typical high season in Nordic electricity markets.
Looking forward, UPM forecasts H1 2025 comparable EBIT to range between EUR400 million and EUR625 million, compared with EUR515 million in H1 2024. Increased pulp deliveries from the fully operational Paso de los Toros mill and stable growth in label, specialty paper and plywood segments are expected to support performance. However, margin pressure and geopolitical risks may weigh on results.
The company warned of continued uncertainty from escalating global trade tensions, including potential tariff impacts on supply chains, trade flows, and currency rates. UPM estimates that 14% of its sales go to the U.S., with 60% of those products imported and possibly subject to tariffs.
