Bergs Timber’s net sales for the 4Q 2019 amounted to SEK 687 million ($70.8 million), compared to SEK 772 million ($79.6 million) in the 4Q 2018. The decrease of SEK 85 million ($8.7 million) is mainly explained by lower sales volumes and prices for the sawmills , as the company said in the press release received by Lesprom Network.
4Q 2019 operating profit decreased to SEK -22 million ($2.3 million). Lower prices for timber products due to oversupply and lower sales- and production volumes are the main explanation for the lower operating profit. Adjusted for restructuring costs of SEK 3 million in Estonia, the operating profit was SEK -19 million ($1.9 million).
Net sales for the FY 2019 amounted to SEK 3,206 million ($330.5 million), compared to SEK 2,655 million ($273.7 million) in 2018. The increase of SEK 551 million ($56.8 million) is explained by the acquisition of the Norvik companies, included in the Group's net sales from 15 May 2018. The net sales for the Swedish companies decreased by SEK 162 million ($16.7 million) due to lower sales volume and lower prices for sawn timber compared to the previous year.
FY 2019 operating profit was SEK 78 million ($8 million), corresponding to an operating margin of 2.4%. The operating profit for the Swedish entities, SEK 15 million ($1.5 million), was SEK 126 million ($13 million) lower than the same period previous year.
Adjusted for income from negative excess value and transaction costs related to the acquisition of Fågelfors Hyvleri, fair valuation of contingent consideration and one-off items in the UK and Estonia, the adjusted operating profit was SEK 60 million ($6.2 million).
Bergs Timber produces and sells sawn and further processed wood products. It operates its production facilities in Sweden, Estonia and Latvia.
