Sveaskog's 1Q 2022 net sales increased by 18% to SEK 1,992 million. Total delivery volumes increased by 4% while the prices of forest raw materials increased by an average of 12%. Other income, mainly for leases and seedlings, increased by 2%. Sales of forest raw materials amounted to 2,963 thousand cubic meters (m3sub). It is 5% higher deliveries in comparison with the corresponding period last year, which amounted to 2,810,000 m3sub.
Operating profit increased by 15% and amounted to SEK 481 million ($49 million). The explanation for the improvement in earnings is increased timber prices. The average price of timber deliveries from own forests is 11% higher than the equivalent period last year. Higher timber prices and increased lease income from wind power have been partially offset by lower volumes from own forests and increased felling costs for input goods, e.g. fuels and spare parts.
Profit for the quarter amounted to SEK 669 million ($68.3 million), equivalent to SEK 5.65 per share.
Comments from Sveaskog's President and CEO Erik Brandsma: "Demand for timber, pulp, paper and cardboard remains strong both in Sweden and in the rest of the world. Sawmills and the rest of the forestry industry are in urgent need of raw materials. As a result, prices for Sveaskog timber suppliers are now being increased throughout the country. These price rises are helping to further boost the profitability of forestry, and justifies a high level of activity in the forest, involving both regeneration felling and thinning."
"A long-term approach and value creation are important for a company like Sveaskog. The forestry sector is in transition, and we have a vital task ahead of us in developing the company. The forest will provide us with raw materials and energy which can contribute to a climate-neutral future, and the biodiversity of the forest landscape will be strengthened. At the same time, the forest is important for recreation, tourism, small businesses, as a bearer of cultural heritage and for a thriving reindeer industry. This is a great responsibility that we have at Sveaskog. We will make sustainable use of the forest by climate-adapting our forestry while at the same time creating growth. This is what our sustainable forestry programme is all about."
Sveaskog, a state-owned company, is the largest forest owner in Sweden. The company owns 14% of Sweden’s forests, operates in approximately 170 municipalities and has over 750 employees around the country. Sveaskog’s core business is to manage the forest, and provide timber, pulpwood, wood chips, biofuel, seedlings and forest services.
