Despite the ongoing Covid-19 pandemic, demand for Bergs’s products has been good. The market for wood products has strengthened during the second quarter and prices for wood products have been gradually raised. The market for do-it-yourself, renovation and garden products has developed strongly, while a decline in industrial construction in Europe and the USA has been noted. Bergs focus on the garden range and the do-it-yourself segment has been favorable and sales volumes, mainly in May and June, have been strong.
2Q 2020 net sales declined by 12% to SEK 545 million, compared to SEK 619 million in the 2Q 2019. The lower sales were mainly related to lower sales volumes and lower sales prices for sawn products.
Adjusted EBITDA for the 2Q 2020, including the units reported as discontinued operations, amounts to SEK 74 million, which is an improvement of SEK 25 million compared with the previous year. Due to high demand, the company has been able to reduce its stock levels significantly. This, together with a good level of earnings, has meant that Bergs reports a strong cash flow from operations for the 2Q.
With wood as a raw material, Bergs produces processed wood products from sustainably managed forests in the Baltic Sea region.