Bergs Timber: Q2 EBITDA above, weaker outlook - ABG

Q2 EBITDA of SEK 173m Sawn wood and Pellets above Outlook: weaker, lower sawn wood prices Q2 EBITDA of SEK 173m Q2 EBITDA of SEK 173m was 24% above ABGSCe at SEK 139m. The Sawn wood segment and Pellets were above ABGSCe (higher prices), while the Wood protection and Joinery segments were in-line. Reported EBIT was SEK 151m (ABGSCe SEK 118m). EPS of SEK 4.41m vs. ABGSCe at SEK 3.21 (positive net financial items).

Sawn wood and Pellets above Clean EBITDA margin was 17% vs. 9% in Q1 (higher prices). Sawn wood EBITDA was strong at SEK 116m vs. ABGSCe at SEK 94m. Wood protection was in-line at SEK 27m vs. ABGSCe at SEK 27m. The segment was positively impacted by higher prices and lower raw material costs (due to lag) in Q2. Joinery was also in-line at SEK 21m. Other was above (higher prices for pellets). Realised prices rose ~20% q-o-q for the Sawn wood segment, while delivery volumes were down -3%. Net debt was SEK 278m vs. SEK 130m ending Q1.

Outlook: weaker, lower sawn wood prices The company sees more uncertainty for sawn wood and declining prices. Order books are good for most products, but they are prepared for a possible decline in demand. Note that peers have announced sawn goods prices down 25-30% in Q3, which is negative. The market for windows/doors and pellets are still good. The company expects a positive cash flow for H2.

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Länk till analysen i sin helhet: https://cr.abgsc.com/foretag/bergs-timber/Equity-research/2022/7/bergs-timber---q2-ebitda-above-weaker-outlook/