26 January 2024 kl 17:00

Sveaskog's Year-end Report, January-December 2023: Strong operating profit for the year despite lower volumes

The operating profit for the quarter decreased by 22 per cent to MSEK 199 (254). Higher timber prices have been offset by lower volumes from Sveaskog’s own forest, as well as increased costs for felling and processing after the storm Hans.

1 October – 31 December 2023

Net sales decreased by 3 per cent to MSEK 1,990 (2,044). Timber prices increased by an average of 12 per cent, while delivery volumes decreased by 15 per cent.
The operating profit decreased by 22 per cent to MSEK 199 (254). Higher timber prices have been offset by lower volumes from Sveaskog’s own forest, as well as increased costs for felling and processing after the storm Hans.
Share of profits of associates amounted to MSEK –81 (–28), mainly due to worse market conditions for Setra Group.
The reported net change in value of biological assets amounted to MSEK 3,436 (179), where the increase was mainly attributable to changed price assumptions.
Profit for the quarter after dividends amounted to MSEK 2,750 (288), equivalent to SEK 23.23 (2.43) per share.

1 January – 31 December 2023

Net sales increased by 1 per cent to MSEK 7,863 (7,760). Timber prices increased by an average of 14 per cent, while delivery volumes decreased by 13 per cent.
Operating profit increased by 5 per cent and amounted to MSEK 1,429 (1,366). Higher timber prices have been offset by lower volumes from Sveaskog’s own forest, as well as increased costs for felling and forest management.
Share of profits of associates amounted to MSEK –60 (574), mainly due to worse market conditions for Setra Group.
The reported net change in value of biological assets amounted to MSEK 3,376 (499), where the increase was mainly attributable to changed price assumptions.
Profit for the year after dividends amounted to MSEK 3,562 (1,979), equivalent to SEK 30.08 (16.71) per share.

Significant events

Sveaskog’s Extraordinary General Meeting resolved to distribute compensation land of 21,525 hectares to the state in a subsidiary that was subject to dividend, in accordance with the Swedish Parliament decision. The book value of the shares was approximately MSEK 361.
Sveaskog and AirForestry entered into a multi-year partnership on thinning with drones.
Sveaskog’s Board of Directors proposed to pay a dividend of MSEK 1,207 to the owner.

Comments from Sveaskog's President and CEO Erik Brandsma:

- Global demand for timber is continuing to fall and sawmills around the world are reducing their production of sawn timber. According to official price statistics for the quarter, prices of wood products have fallen slightly, but they remain at a historically high level. The supply of fibre raw materials remains limited and interest in forest-based biofuel deliveries remains very high. Price levels for fuel chips and energy wood deliveries have developed well during the year. During the year, Sveaskog prioritised deliveries to customers and despite the fact that the shortage of raw materials during the year led to concerns in the market and a tough situation for many sawmills, we look to the future with confidence.

- During the fourth quarter of the year, we launched our new strategic direction, thereby laying the foundation for the coming years. Sveaskog’s overall, long-term vision is to be the world leader in sustainable value creation in the forest. In order to achieve this, we strive to make the best use of the assets that are our forest and land, while at the same time meeting current climate and environmental objectives and balancing ecological, economic and social values. Although Sveaskog’s primary business continues to be forestry, we plan to take an increasingly active role in the value chain, including by increasing revenues through land use.