Technical Textile

Finnish company Ahlstrom achieves record profitability in 2024

04 Mar '25
3 min read
Finnish company Ahlstrom achieves record profitability in 2024
Pic: Ahlstrom

Insights

Ahlstrom, a global leader in fibre-based specialty materials achieved record-high profitability in 2024, driven by strategic restructuring, innovation, and sustainability initiatives. The company reported an all-time high comparable EBITDA margin of 15.2 per cent, supported by record-level operating cash flow. Despite market challenges, deliveries grew by 3 per cent on a comparable basis. The company’s ongoing transformation, driven by successful commercial and operational excellence initiatives, resulted in improved margin on variable cost per ton.

In a bid to streamline operations and enhance agility, Ahlstrom restructured its divisions from five to three, bringing decision-making closer to customers. It announced that it has strengthened its business portfolio through strategic actions, including the divestment of the Aspa pulp mill and the closure of the Bousbecque and Falun plants to focus on high-growth sectors. The company also centralised parchment paper production in Saint-Severin and expanded into specialty materials for life sciences with the acquisition of ErtelAlsop, Ahlstrom Holding said in a press release.

Innovation remained central to Ahlstrom’s growth strategy, with 31 per cent of sales in 2024 stemming from products launched in the past five years. New offerings included sustainable packaging materials and advanced filtration solutions, reinforcing the company’s commitment to cutting-edge product development.

Looking ahead, Ahlstrom remains well-positioned for sustained growth, bolstered by strong profitability, cash flow, and customer loyalty. The company continues to prioritise co-innovation and sustainability, aiming to reinforce its leadership in sustainable specialty materials.

Financial performance in 2024

In fiscal 2024, ended December 31, the net sales of the company stood at €2,965.4 million (~$3.20 billion), remaining stable compared to the previous year. Higher average selling prices offset slightly lower deliveries, while comparable deliveries grew by 3 per cent, excluding the impact of the Stenay and Aspa divestments. Despite an uncertain market environment, customer activity supported shipment growth in the first half, though momentum slowed in the latter half of the year.

Ahlstrom sustainability

Ahlstrom reaffirmed its commitment to sustainability, with validated emissions reduction targets of 42 per cent for scope 1 and 2 and 25 per cent for scope 3 by 2030, aiming for net-zero by 2050. Ahlstrom advanced its sustainability agenda, with climate targets validated by the Science Based Targets initiative (SBTi). The company received a Platinum Medal in the EcoVadis sustainability assessment and an A- Leadership score in Carbon Disclosure Project (CDP), further solidifying its environmental credentials.

Fibre2Fashion News Desk (SG)

More Ahlstrom-Munksjo News...