Year-end report 1 January – 31 December 2020

Bergs reports strong earnings for the fourth quarter

Deliveries and order intake remained strong for the most of the Group’s products. Activity in the DIY sector and the RCE sector were high for the season. Continued low interest rates, and financial stimulus packages, contributed to positive market performance. Demand for sawn and planed wood products was unexpectedly strong in the second half of 2020, and the rate of production did not keep pace. This resulted in low inventories and price increases.

Deliveries of impregnated wood and garden products were good for the season. Similarly, deliveries and order intake for our window and door production were healthy. Our two Baltic sawmills, oriented on industrial customers, strengthened profitability in the fourth quarter with gradually rising sales prices. During the quarter, we also noted an improvement in our operations in the UK, the result of such events as the addition of several new customers in our port and distribution operations.

EBITDA for the fourth quarter totalled SEK 78 million, an improvement of SEK 72 million year-on-year. The improved earnings were attributable to higher sales volumes and margins for our products, especially for sawn product. EBITDA for the full year, including discontinued operations, totalled SEK 338 million, of which capital gains from the sale of the Swedish sawmill operations totalled SEK 87 million. EBITDA for continuing operations totalled SEK 212 million, which is an improvement year-on-year when adjusted EBITDA totalled SEK 115 million.
 

FOURTH QUARTER (1 OCTOBER–31 DECEMBER) *
• Net sales increased by 38% to SEK 558 million (405). The higher net sales were related to higher sales volumes and higher sales prices.
• EBITDA amounted to SEK 78 million (6). Adjusted EBITDA (adjusted for items affecting comparability) amounted to SEK 78 million (9), an increase primarily related to higher margin for sawn products but also to higher sales volumes and higher sales prices for processed products. Adjusted EBITDA margin was 14.0% (2.2).
• Operating profit amounted to SEK 58 million (-7). Adjusted operating profit amounted to SEK 58 million (-4).
• Cash flow from operating activities amounted to SEK 51 million (2).
• Earnings per share, before and after dilution, was SEK 0.13 (-0.06). Earnings per share, before and after dilution, including discontinued operations, was SEK 0.13 (-0.09).
• Financial net debt totalled SEK -32 million (675) as of 31 December.
• The Board of Directors proposes an ordinary dividend of SEK 0.12 and an extra dividend of SEK 0.08 per share, for a total of SEK 0.20 (0.00) per share. The total proposed dividend is approximately SEK 69 million.

FULL-YEAR (1 JANUARY–31 DECEMBER) *
• Net sales increased by 5% to SEK 2,149 million (2,056), mainly related to higher sales volumes for processed wood products.
• EBITDA amounted to SEK 212 million (133). Adjusted EBITDA amounted to SEK 212 million (115). Lower sales volumes and sales prices for sawn products were offset by lower costs for raw material. Higher sales volumes to the DIY sector contributed positively. Adjusted EBITDA margin was 9.9% (5.6).
• EBITDA, including earnings from discontinued operations prior to the sale of the Swedish sawmills, amounted to SEK 251 million (172). Adjusted EBITDA amounted to SEK 264 million (154), corresponding to an adjusted EBITDA margin of 8.8% (4.8).
• Operating profit amounted to SEK 137 million (73). Adjusted operating profit amounted to SEK 137 million (55).
• Cash flow from operating activities, including discontinued operations, amounted to SEK 355 million (147).
• Earnings per share, before and after dilution, was SEK 0.30 (0.13). Earnings per share, before and after dilution, including discontinued operations, was SEK 0.49 (0.13).

The group's key performance indicators

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 Year-end report report is such that Bergs Timber AB (publ) is required to disclose in accordance with the EU Market Abuse Regulation. The information was submitted for publication on February 3, 2021 at 08:30 a.m. The Year-end report is available on the company's website, www.bergstimber.com

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 2.0 billion and around 850 employees. Bergs is listed on Nasdaq Stockholm, and its head office is in Vimmerby, Sweden.
www.bergstimber.com

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