DAVY VIEW

Swedish forest owner SCA reported 62% Q3 2024 EBIT growth to SEK1,476m (Q3 2023: SEK913m), an 8.8% beat on SEK1,356m Infront Data consensus, due to higher-than-expected profits in Wood Products and Containerboard. Its SEK108.5bn Q3 2024 forest value equates to SEK154/sh (over 100% SCA market cap). Despite Q3 2024 pricing led consensus beat, we see limited changes to SCA 2024E consensus of SEK7.3bn EBITDA and SEK5.2bn EBIT (source: Infront Data).