Interim report 1 January – 30 June 2020
Second quarter 2020 – Bergs reports improved result and strong cash flow
Despite the ongoing Covid-19 pandemic, demand for Bergs’s products has been good. The market for wood products has strengthened during the second quarter and prices for wood products have been gradually raised. The market for do-it-yourself, renovation and garden products has developed strongly, while a decline in industrial construction in Europe and the USA has been noted. Bergs focus on the garden range and the do-it-yourself segment has been favorable and sales volumes, mainly in May and June, have been strong.
Adjusted EBITDA for the second quarter, including the units reported as discontinued operations, amounts to SEK 74 million, which is an improvement of SEK 25 million compared with the previous year. Due to high demand, we have been able to reduce our stock levels significantly. This, together with a good level of earnings, has meant that we report a strong cash flow from operations for the second quarter.
Second quarter (1 April-30 June) *
- Net sales declined by 12% to SEK 545 million (619). The lower sales were mainly related to lower sales volumes and lower sales prices for sawn products.
- Adjusted for non-recurring items, EBITDA amounted to SEK 52 million (40), an increase primarily related to higher margin for sawn products but also to higher sales volumes to the Swedish DIY-sector. Adjusted EBITDA margin was 9.5% (6.5).
- Adjusted EBITDA, including discontinued operations, amounted to SEK 74 million (49), corresponding to an adjusted EBITDA-margin of 8.4% (5.4).
- Adjusted operating profit amounted to SEK 35 million (25).
- Operating cash flow, including discontinued operations, amounted to SEK 143 million (28). The cash flow was positively affected by lower stock levels.
- Earnings per share, including discontinued operations, was SEK 0.07 (0.08).
- An agreement was signed with Vida to sell the Swedish sawmill business.
Interim period (1 January-30 June) *
- Net sales declined by 10% to SEK 1,073 million (1,189), mainly related to lower sales volumes and lower sales prices for sawn products.
- Adjusted EBITDA amounted to SEK 81 million (84). Lower sales volumes and sales prices were offset by lower costs for raw material. Higher sales volumes to the Swedish DIY-sector contributed positively. Adjusted EBITDA-margin was 7.5% (7.1).
- Adjusted EBITDA, including discontinued operations, amounted to SEK 125 million (130), corresponding to and adjusted EBITDA-margin of 7.2% (7.2).
- Adjusted operating profit amounted to SEK 48 million (57).
- Operating cash flow, including discontinued operations, amounted to SEK 137 (-6) million.
- Earnings per share, including discontinued operations, was SEK 0.09 (0.23).
*) The Swedish sawmill business is classified as discontinued operations as of 30 June 2020. Comparative periods in the consolidated income statement are restated to reflect that classification. The consolidated income statement, balance sheet (current period) and key performance indicators reflects the continuing operations, unless otherwise indicated.
The group's key performance indicators
| SEK million | 2020 Apr-Jun 3 months |
2019 Apr-Jun 3 months |
2020 Jan-Jun 6 months |
2019 Jan-Jun 6 months |
2019 Jan-Dec 12 months |
| Net sales | 545 | 619 | 1,073 | 1,189 | 2,056 |
| Adjusted EBITDA | 52 | 40 | 81 | 84 | 115 |
| Adjusted EBITDA margin, % | 9.5 | 6.5 | 7.5 | 7.1 | 5.6 |
| Adjusted operating profit | 35 | 25 | 48 | 57 | 55 |
| Adjusted operating margin % | 6.4 | 4.0 | 4.5 | 4.8 | 2.7 |
| Operating profit | 35 | 36 | 48 | 68 | 73 |
| Operating margin, % | 6.4 | 5.8 | 4.5 | 5.7 | 3.6 |
| Adjusted EBITDA, continuing and discontinued operations | 74 | 49 | 125 | 130 | 154 |
| Adjusted EBITDA-margin, %, continuing and discontinued operations | 8.4 | 5.4 | 7.2 | 7.2 | 4.8 |
| Earnings per share, before and after dilution, SEK | 0.07 | 0.08 | 0.09 | 0.23 | 0.13 |
| Equity per share, SEK | 3.27 | 3.34 | 3.27 | 3.34 | 3.18 |
For complete report, go to www.bergstimber.com
Contact
Questions regarding the interim report can be answered by President and CEO Peter Nilsson on telephone number 070-315 09 27 or CFO Anders Marklund 070-284 47 96.
The information in this interim report is such that Bergs Timber AB (publ) is required to disclose in accordance with the EU Market Abuse Regulation and the Securities Market Act. The information was submitted for publication on July 31, 2020 at 1:00 pm. The interim report is available on the company's website, www.bergstimber.com
Financial calendar
Interim report for quarter 3 2020: 3 November 2020
Year-end report 2020: 3 February 2021
This is Bergs
– an international wood products Group
With wood as a raw material, Bergs produces processed wood products from sustainably managed forests in the Baltic Sea region. With years of experience in wood and a great deal of competence in processing, we promote building a sustainable society with renewable materials.
Our operations – conducted through wholly owned subsidiaries in Sweden, Estonia, Latvia and the UK – encompass sawmills and processing as well as distribution and logistics.
The Group has sales of approximately SEK 3.2 billion and around 1,000 employees. Bergs is listed on Nasdaq Stockholm, and its head office is in Vimmerby, Sweden.
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