Bergs Timber sells sawn and processed wood products. It operates through its two main segments: Sawmills and Further Processed.
Historically, Bergs Timber has been a typical sawmill group with a high degree of commoditised wood products. Going forward, however, the group’s strategy is to increase focus on value-added processing and perform complementary acquisitions. Combined with strong macroeconomic fundamentals, industry consolidation and improvement programs there should be room for earnings uplift over the coming years. The acquisition of Norvik Timber will transform the group into a more vertically integrated player with potential for margin improvement and a higher degree of earnings stability.
Risks include higher raw material costs, lower product prices and changes in the general economic cycle.