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2024-05-14 07:30:00 CEST 2024-05-14 07:30:05 CEST REGULATED INFORMATION Koskisen Oyj - Interim report (Q1 and Q3)Koskisen's profitability weakened year-on-year - the demand for and prices of plywood products remained still stableKoskisen Corporation stock exchange release, May 14, 2024, at 08:30 a.m. EEST Koskisen’s profitability weakened year-on-year – the demand for and prices of plywood products remained still stable This release is a summary of Koskisen Corporation’s January–March 2024 Interim report. The complete Interim Report is attached, and also available on the company’s website at koskisen.com/investors. January-March 2024 in brief
Profit guidance for 2024 unchanged (published on 16 February 2024) Key figures
The figures in brackets refer to the comparison period, i.e. the corresponding period the previous year, unless specified otherwise. CEO Jukka Pahta: The profitability of the Sawn Timber Industry segment decreased year-on-year, with EBITDA amounting to EUR 0.7 (1.6) million. The ramp-up of the new sawmill has progressed slower than anticipated. The ramp-up was slowed during the first quarter by technical challenges, very cold weather and the direct strike concerning the company's own production activities that took place in February. However, towards the end of the quarter, we approached the target level for the daily production volume of the sawmill. The direct strike had a minor impact on sawmill production. It lasted for a few days, during which some of the processes were kept running normally. During the indirect strikes, which primarily affected logistical connections, we did not need to restrict production, but part of customer deliveries were delayed due to the ports being closed. Container transport is used almost exclusively for sawn timber products, and approximately 75 per cent of the sawn timber produced by Koskisen is exported. Part of the anticipated first-quarter revenue of the Sawn Timber Industry segment was pushed to the second quarter due to the strike. We expect that the delayed deliveries will be completed in their entirety in Q2. The strikes did not lead to actual additional expenses for the Sawn Timber Industry segment. The general sawn timber market development and the price level of new sales seem slightly better than at the beginning of the year, although the global construction activity is continuing in a subdued manner. Demand for sawn timber will be increased by the approaching summer season, which will probably be more moderate than normal. There is also less supply on the market than normal. The cost of wood raw material remains high, and prices were on a rising trajectory in the first quarter. The selling price of energy wood was at a good level during the heating season, with consumption declining towards the summer season. The profitability of the Panel Industry segment decreased year-on-year, with EBITDA amounting to EUR 5.3 (9.8) million. Compared to the reference period, profitability was negatively affected by lower volumes, higher production costs and strikes. The direct strike resulted in a few lost days of production for the Panel Industry segment. During the indirect strikes, production continued as normal, but some additional costs were incurred from the use of alternative logistics solutions. Also, part of the anticipated revenue of the Panel Industry segment was postponed to the second quarter. In the Panel Industry segment, the downturn in the construction sector is still reflected the most in the demand for chipboard. For plywood, the market situation is fairly positive, with product demand and prices remaining stable. The recent increase in activity in the automotive industry has been favourably reflected in the Kore business. Koskisen has further specified its strategic growth paths and related measures for the strategy period 2024–2027. The strategic priorities are to create value for customers, develop the existing operations and take bold steps forward. The financial targets previously set by Koskisen until the end of 2027 remain unchanged. Value creation for customers is achieved through high-quality and customised products, customer-oriented services and innovative solutions. The development of the company's existing operations is focused on enhancing competitiveness and differentiation, product development and the effective implementation of new initiatives. Taking bold steps forward includes investments and potential acquisitions. It is our view that the market for Koskisen's wood products is large and will grow further, driven by the green transition, urbanisation and the development of commerce and transport. Wood products that bind carbon for a long time and are targeted at these high-growth areas are a key part of a more sustainable circular bioeconomy. We help our customers to succeed, mitigate climate change and adapt to the future with our products and services. Further developing the sustainability of the company's operations and value chain through goal-driven sustainability efforts is also a key aspect of the strategy. The specified strategy supports Koskisen's previously set ambitious goal of increasing revenue to EUR 500 million by the end of 2027. The recent strategy work provides the company with a clear direction for achieving this sustainable growth. Webcast Media enquires: Koskisen is an international wood processing specialist with more than a century of experience and known for its agility and ability to listen to the customer. We utilise our valuable wood raw material as thoroughly as possible, up to the last particle of sawdust. We manufacture high-quality and sustainable circular bioeconomy products that store carbon for decades. The Group’s revenue in 2023 was EUR 271 million. Read more: koskisen.com |
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