Året 2024

2024 in brief

The market environment for the Forest & Fiber sector was challenging as demand remained at a low level in several sectors and the performance of our portfolio companies was mixed. At Ahlstrom Oyj, the net sales were at last year’s level, but profitability improved significantly as the transformation actions delivered results – both EBITDA in terms of euros as well as EBITDA margin reached record levels. The work to make the company ready for the next phase continues and accelerating growth is a priority. Munksjö was able to keep profitability at a last year’s level despite a drop in net sales and continued tough competition. Munksjö’s cash flow developed positively. Both Suominen and Bast Fibre Technologies had a challenging year. Internal operational issues impacted Suominen’s performance, whereas Bast Fibre Technologies struggled to increase revenue from higher added value products. The first year of Metsäkonepalvelu in our ownership was solid, and 2024 was the best in the company’s history in Finland while Swedish business requires further actions to perform. Turning Metsäkonepalvelu into a growth platform is a priority for us.

For M&J Recycling, the year was challenging as volumes for its capital equipment business dropped in several key markets. Nonetheless, orders started to pick up towards the end of the year. Also, at Glaston, both the orders received and net sales declined, but profitability improved. Detection Technology reached a targeted profitability level in the second half of the year, and strong cash flow supported doubling the dividend. At GPV, demand was soft, but the company was able to maintain profitability and cash flow performance was strong.

Real estate and Forestry businesses had a solid year. In real estate, the occupancy rates increased, supporting good cash returns. Avain Yhtiöt secured plots in the capital area for new development financed through the Housing Finance and Development Centre of Finland (ARA). Forestry business had a record year in terms of profit as demand for wood was at a high level. Harvesting followed our long-term forest plan, according to which less than the annual growth is harvested to increase the biomass volume in the forests.

Strategy in action

During 2024, we focused on hands-on strategy execution. As a crucial part of our strategy implementation, each Ahlström team defined their own Winning Concept:

• Industrial ownerships: the Winning Concept includes a focus on sectors where we have industry insights, credibility, and networks; more hands-on ownership driving commercial and operational excellence; and a stronger team with increased capabilities and clock speed. The team was strengthened with two strategic hires during 2024.
• Real estate: the Winning Concept is based on active asset management, selected real estate development projects, and a sharp focus on high-quality assets and tenants only in the largest Finnish cities. In 2024, we achieved an increase in our occupancy rates compared to a decrease in the benchmark.
• Forestry: the Winning Concept is based on delivery sales, where we manage the operations from the forest to the customer, resulting in clearly higher profitability compared to standing sales. In 2024, over 90% of our forest revenue came from delivery sales.

In sum, in all asset classes we aim for superior returns through active ownership and unique value-add that our brand, capabilities, and the network can bring. Where we cannot add unique value is considered non-core and we can exit when the time and value are right.

In addition to the asset classes, support teams as well as Ahlström’s Noormarkku Works service and maintenance teams defined their Winning Concepts and ambitious targets. Naturally, we still have a lot to do and can significantly improve, but we are inspired by the challenge.

A. Ahlström was recognised as one of the Most Inspiring Workplaces in Finland. The recognition is awarded annually to companies that have received exceptionally good results from the employee experience survey, conducted by Eezy Flow. I believe that our inspiring work environment is born not only from a good atmosphere, but also from the opportunity to do things worth striving for and truly develop as a professional.

Sustainability plays an integral part in our strategy. In 2024, we continued our ESG efforts, including preparations for the CSRD reporting, updates to our ESG Management System Maturity model, and CSRD Double Materiality Assessments. Further details are available in the Sustainability section of this report on the page 49.

To bring our strategy to life, we introduced a training module “Fundamentals and Future of Forest and Fiber”, that is especially designed for Ahlström employees, shareholders, and family members. The objective is to provide an in-depth exploration of forest and fiber, find inspiration in the subject, and support our strategy, thus continuing the long legacy of the Ahlström family business.

In January 2025, we hosted the annual Ahlström Network Day, bringing together over 100 guests from our network companies’ boards and management. At the event, I outlined an ambitious goal for each of our portfolio companies: to double the equity value within the next five years. Achieving this very ambitious target is not rocket science but will require good strategies, commercial and operational excellence, and decisive actions.

Finally, I would like to acknowledge the good work done by our employees throughout 2024 and thank the shareholders and the Board for the trust and support. The year 2026 will mark the 175th anniversary for the Ahlström family in business. The jubilee preparations have started, and I look forward to continuing to execute the strategy together to make sure we keep creating sustainable value also for generations to come.

Jyrki Vainionpää
President and CEO