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SLVM NYSE· Sylvamo Corp
Earnings report Q4 2023

SLVM Reports Decrease in Revenue for Latest Quarter

Segments of revenue

SLVM's revenue for the latest quarter was $1.006 billion, a decrease of $17 million compared to the same period in the previous year. This decline was primarily driven by lower volumes ($19 million) and lower sales price and mix ($7 million), partially offset by favorable foreign exchange impacts.

Strengths

Despite the decrease in revenue, SLVM's Latin America segment continues to demonstrate strong profitability relative to other geographies in the uncoated paper industry. This indicates the company's ability to navigate challenging market conditions and maintain a competitive position. Additionally, SLVM's management has approved a special dividend of $0.30 per share, reflecting their confidence in the company's financial stability.

Challenges

SLVM faced several challenges in the latest quarter, including lower volumes and lower sales price and mix, which contributed to the decline in revenue. The impact of unfavorable foreign exchange impacts also affected the company's performance. Furthermore, the divestiture of SLVM's Russian operations in the previous year represented a strategic shift away from that market, potentially impacting overall revenue.

Noteworthy

It is worth noting that SLVM's Europe operating profit for the year ended December 31, 2023, was $75 million lower than the same period in the previous year. This decline was primarily attributed to factors such as lower sales price and mix, higher planned maintenance outages, higher unabsorbed costs due to economic downtime, higher operating costs, and lower volumes. However, lower input costs, primarily for energy, and operating profit contributed by Nymölla partially offset these negative factors.

Summary

SLVM's latest quarter performance saw a decrease in revenue, primarily driven by lower volumes and lower sales price and mix. Despite these challenges, the company's Latin America segment continues to demonstrate strong profitability. SLVM's management has shown confidence in the company's financial stability by approving a special dividend. However, the divestiture of Russian operations and the impact of unfavorable foreign exchange impacts pose ongoing challenges for the company. Overall, SLVM needs to address these challenges and focus on strategies to improve revenue growth in the future.

Source documents

Form 10-K  filed on Feb 21, 2024
10 pages scanned

Reference data

Company financials Q4 revenue 964M
Analyst estimates Q4 EPS beat by 38.10%
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