17 July 2024 kl 15:00

Sveaskog’s interim report January–June 2024: Focus on market and efficiency delivers results

Operating profit increased by 8 per cent and amounted to MSEK 1,092 (1,011). Higher timber prices were offset by lower volumes from own forest and higher felling, nature conservation and forest management costs.

1 April – 30 June 2024

Net sales increased by 7 per cent to MSEK 2,224 (2,075). Timber prices increased by an average of 11 per cent, while delivery volumes decreased by 2 per cent. Other sales decreased by 2 per cent and are mainly attributable to concessions, saplings and other sales.
The average prices of deliveries from Sveaskog’s own forest increased by 20 per cent from the corresponding quarter of the previous year.
Operating profit increased by 11 per cent and amounted to MSEK 500 (449). Higher timber prices have been offset by increased costs for felling, forest management and nature conservation.
Share of profits of associates amounted to MSEK 5 (14).
The reported net change in value of standing timber amounted to MSEK 168 (–279).
Profit for the quarter amounted to MSEK 524 (121), equivalent to SEK 4.43 (1.03) per share.

1 January – 30 June 2024

Net sales increased by 4 per cent to MSEK 4,394 (4,226).Timber prices increased by an average of 12 per cent, while delivery volumes decreased by 7 per cent. Other sales decreased by 1 per cent.
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 8 per cent and amounted to MSEK 1,092 (1,011). Higher timber prices have been offset by lower volumes from Sveaskog’s own forest, as well as increased costs for felling, forest management and nature conservation.
Share of profits of associates amounted to MSEK –32 (8).
The reported net change in value of biological assets amounted to MSEK 199 (26).
Profit for the period amounted to MSEK 924 (768), equivalent to SEK 7.80 (6.49) per share

Comment from Sveaskog’s President and CEO Erik Brandsma:

- The market for Sveaskog’s products remained good during the quarter and more and more customers value our delivery reliability. The prices for all product ranges developed well and are at an all-time high. We can currently note a strong pulp market with good demand for packaging and kraftliner. The sawmills are still in a challenging market with high raw material prices and a weak construction market in large parts of Europe. Energy wood prices are still high despite the summer season and we expect them to remain high into the coming autumn when stocks are to be filled for the winter.

- We are working to find a balance between securing wood raw materials for industry and set-asides to ensure consideration for nature conservation and social interests. Balancing different interests and optimising value creation together with a more varied forestry are important parts of our strategy. The ongoing green transition is helping to develop our existing business and creating opportunities for new business.