Interim report Q1 2020

First quarter 2020 – Improved result for Bergs

” IMPROVED RESULT AND STRENGTHENED MARGINS
The result for the quarter was the best since the first quarter last year. During the winter, certain production curtailments were implemented which, together with an extensive labour dispute at Finnish sawmills, led to a lower supply of wood products. The reduced supply combined with good demand has resulted in lower stocks for the season and that certain price increases have been implemented.

Adjusted for costs related to the closure of Gransjö sawmill, EBITDA for the first quarter amounted to SEK 50 million and operating profit to SEK 25 million, which is an improvement over the past three quarters. Apart from the pellet operations, where the unusually warm winter has slowed the market, all units show an improvement in earnings.”

First quarter
1 January – 31 March 2020

  • Net sales declined by 3% to SEK 856 million (885). The decrease was mainly related to lower sales prices for sawn products.
  • Adjusted for costs related to the closure of Gransjö sawmill, EBITDA decreased to SEK 50 million (82), mainly related to lower sales prices for sawn products and lower production volumes.
  • Adjusted EBITDA margin amounted to 5.9% (9.3)
  • A decision to close Gransjö sawmill was made in March 2020. One-off costs and impairment of fixed assets amounted to SEK 30 million, affecting the operating profit which fell to SEK -5 million (60).
  • Net profit was SEK 6 million (52).
  • Earnings per share was SEK 0.02 (0.15).
  • Operating cash flow amounted to SEK -6 million (-34).
The group's key performance indicators
   
SEK million 2020
Jan-Mar

months
2019
Jan-Mar

months
2019
Oct-Dec
3  
months
2019/20
Apr/Mar

12
months
2019
Jan-Dec

12
months
Net sales 856 885 687 3,177 3,206
Adjusted EBITDA 50 82 6 123 154
Adjusted EBITDA margin, % 5.9 9.3 0.9 3.9 4.8
Operating profit -5 60 -22 13 78
Operating margin, % neg 6.8 neg 0.4 2.4
Adjusted operating profit 25 60 -19 25 60
Adjusted operating margin % 2.9 6.8 neg 0.8 1.9
Earnings per share, before and after dilution, SEK 0.02 0.15 -0.09 0.00 0.13
Equity per share,
SEK
3.25 3.27 3.18 3.25 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 May 5, 2020 at 1:00 pm. The interim report is available on the company's website, www.bergstimber.com

Financial calendar
Annual General Meeting fiscal year 2019: 23 June 2020
Interim report for quarter 2 2020: 31 July 2020
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.

www.bergstimber.com

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About Us

Bergs Timber can be found on both sides of the Baltic Sea with sawmills and processing in an overall production totalling around 1 million cubic meters of sawn timber products. In Latvia we manufacture gardening products, windows, doors and prefabricate houses, while in Sweden we have a facility for rot-proofing wood. We also have an operation in the UK. We are entrepreneurs in an organisation with decentralised responsibility. The entire business is characterized by security and reliability. We always aim to be perceived as the most attractive alternative for our customers through modern, made-to-order production and a unique product. We make investments in our facilities and fine tune them daily to meet your requirements. Forest owners can feel safe with us as their collaborative partner in the forestry industry. We also make the best possible use of your timber in our facilities. Wood binds carbon dioxide and the wood products industry helps people make sustainable, climate-friendly choices. People who invest in Bergs Timber are making a sustainable investment.

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