IMPROVED EARNINGS AND STRONG CASH FLOW
Demand in the third quarter remained strong for the majority of the Group's products. It was especially strong for products in the DIY market and in renovation. This has benefited Bergs's specialisation in pressure-treated wood, garden products, windows, doors and timber for construction. The volumes for our core markets in the UK, US, France, Sweden and Latvia have increased. The prices for wood products have increased in pace with strong demand and limited supply. Sales prices for sawdust, pellets and wood chips fell as a result of an excess supply of wood for pulp and energy.
EBITDA for the quarter, including earnings from discontinued operations and earnings from the sale of the Swedish sawmill business, totalled SEK 149 million. Earnings from the sale amounted to SEK 87 million. EBITDA, adjusted for earnings from the sale, amounted to SEK 62 million, an improvement of SEK 44 million year-on-year. The improved earnings are an effect of higher margins for the sawmills and high sales volumes of processed wood products to the DIY sector.
As a result of the divestment of the Swedish sawmill business and inventory reductions in other operations, cash flow for the quarter was strong and has substantially strengthened our financial position. Net financial debt at the end of the quarter was SEK 11 million, compared with SEK 664 million year-on-year.
The group's key performance indicators
AMOUNTS IN SEK 2020 2019 2020 2019 2019
million Jul-Sep Jul-Sep Jan-Sep Jan-Sep Jan-Dec
3 months 3 months 9 months 9 months 12 months
Net sales 518 463 1,591 1,651 2,056
EBITDA 53 31 134 127 133
Adjusted EBITDA 53 21 134 106 115
Adjusted EBITDA 10.2 4.5 8.4 6.4 5.6
Operating 31 12 79 81 73
Operating 6.0 2.6 5.0 4.9 3.6
Adjusted 31 2 79 60 55
Adjusted 6.0 0.4 5.0 3.6 2.7
EBITDA incl. 149 28 261 169 172
Adjusted EBITDA 62 18 186 148 154
Adjusted EBITDA 8.7 2.5 7.6 5.9 4.8
Earnings per 0.08 0.01 0.18 0.18 0.13
Earnings per 0.27 -0.01 0.36 0.22 0.13
Equity per 3.54 3.30 3.54 3.30 3.18
For complete report, go to www.bergstimber.com
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. The information was submitted for publication on November 3, 2020 at 1:00 pm. The interim report is available on the company's website, www.bergstimber.com
Year-end report for 2020 3 February 2021
Interim report January-March 2021 5 May 2021
Interim report January-June 2021 29 July 2021
Interim report January-September 2021 28 October 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 2.0 billion and around 850 employees. Bergs is listed on Nasdaq Stockholm, and its head office is in Vimmerby, Sweden.
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