Bergs Timber: More focus on windows, less on timber - ABG

Q4 report due on Thursday, 2 February
We expect softer Joinery growth than previous quarters
Sales expected to decline by 13%, clean EBIT of SEK 33m


Q4'22 expectations

We expect Bergs to deliver Q4 sales of SEK 686m, down 13% y-o-y. We continue to expect lower demand for Sawn Wood and Wood Protection, as we expect a weaker construction market and a decrease in DIY demand. For Joinery, we forecast growth to resume, albeit at a lower pace than in previous quarters due to a weaker construction market, and we therefore expect Joinery sales to grow 15% y-o-y. However, since products in the Joinery business are mainly composed of high-end windows (only custom-made orders), we expect demand to be hurt less than lower-end window producers. All in all, for the group, we foresee a clean EBITDA of SEK 54m (106m) and a clean EBIT of SEK 33m (85m). Finally, we expect a net profit of SEK 24m (88m).

Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/bergs-timber/Equity-research/2023/1/bergs-timber---more-focus-on-windows-less-on-timber-/