24 April 2024 kl 13:00

Sveaskog's Interim Report January-March 2024: Continued good demand and high prices

Operating profit increased by 5 per cent and amounted to MSEK 593 (562). Higher timber prices have been offset by lower volumes from Sveaskog’s own forest, as well as slightly increased costs for felling and forest management.

1 January – 31 March 2024

Net sales increased by 1 per cent to MSEK 2,170 (2,151). Timber prices increased by an average of 12 per cent, while delivery volumes decreased by 12 per cent. Other sales increased by 1 per cent and are mainly attributable to concessions, saplings and other sales.
The average prices of deliveries from Sveaskog’s own forest increased by 19 per cent from the corresponding quarter of the previous year.
Operating profit increased by 5 per cent and amounted to MSEK 593 (562). Higher timber prices have been offset by lower volumes from Sveaskog’s own forest, as well as slightly increased costs for felling and forest management.
Share of profits of associates amounted to MSEK –37 (6).
The reported net change in value of standing timber amounted to MSEK 31 (305¹)).
Profit for the quarter amounted to MSEK 402 (647), equivalent to SEK 3.40 (5.46) per share.

1) The value is based on incorrect calculation parameters; restatement was made in the second quarter of 2023.

Comments from Sveaskog's President and CEO Erik Brandsma:

- This year’s relatively cold winter has had both a positive and negative impact on the forest harvests. In the south, the cold has led to good bearing capacity on many lands that would otherwise have been difficult to use, while the low temperatures in the north have meant that the forest machines were periodically forced to stop working. Sveaskog has experienced a quarter with a continued demand for its entire assortment range with rising prices, despite the profitability challenges facing many of our raw materials clients. In parallel with this, we are seeing new business opportunities emerging for those parts of a tree that traditionally weren’t utilised. This is an opportunity not just for Sveaskog but for several new players in the forestry industry.

- In the long-term, the effects of climate change are challenging for forestry. To meet future challenges, forests will need to become more varied and trees more resistant to various attacks and threats. Co-operation with research and development facilities is important as a result. Sveaskog has started a partnership with Skogsforsk (the Forestry Research Institute of Sweden) to secure future supply of seed and sapling material for Swedish deciduous trees. Historically, tree refinement has mainly concerned spruce and pine, but in order to meet future needs, we will need to grow several other types of species for different plant zones. Another initiative is with the Vinnova-financed collaborative project Autoplant. Forest use requires sustainable methods with the rapid and secure establishment of saplings with high growth. The goal of the Autoplant project is to develop an autonomous system for scarification and planting with high precision, low environmental impact and a good working environment.