Bergs Timber's net sales for the 1Q 2021 amounted to SEK 593 million ($71.7 million), compared to SEK 528 million ($63.8 million) in the 1Q 2020. The increase of SEK 65 million ($7.9 million) corresponding to 12%, is attributable primarily to higher sales prices for products in Wood Protection and Sawn Wood as well as higher sales volumes in Joinery.
1Q 2021 EBITDA increased to SEK 65 million ($7.9 million), which corresponds to an EBITDA margin of 11%. The increase is primarily related to higher sales prices for products in Wood Protection and Sawn Wood.
1Q 2021 operating profit amounted to SEK 47 million ($5.7 million), which corresponds to an operating margin of 7.9%.
Peter Nilsson, President and CEO, said: “The year has started off well, and we report EBITDA results for the 1Q of the year of SEK 65 million ($7.9 million), compared with SEK 29 million ($3.5 million) year-on-year. Demand for our products has been healthy, and price increases that strengthened our margins could be implemented.
We have planned increased investments in our existing operations to pursue organic growth. In the first quarter, we took decisions to expand the operation in our subsidiary Bitus. The investment of SEK 22 million ($2.6 million) will entail a tripling of capacity for the company’s linseed oil-impregnated product Linax, where we have both strong demand and a healthy margin. Moreover, preparations are under way ahead of an expansion of capacity in our Latvian subsidiary Byko-Lat.”
With wood as a raw material, Bergs produces processed wood products from sustainably managed forests in the Baltic Sea region.
