Russian Segezha Group announces its unaudited consolidated IFRS financial results and operating results for 1Q 2022. Revenue was up 96% year-on-year (yoy) to RUB 35.6 billion ($584 million), driven by higher sales, higher average selling prices, a positive effect from ruble depreciation and also the effect of consolidation of the assets of Novoeniseisk Wood-Chemical Complex and Inter Forest Rus, which became part of the Group in 3Q and 4Q 2021, respectively.
OIBDA rose by 2.3x yoy to reach RUB 11.8 billion ($193 million), driven by revenue growth and cost optimisation by management. The OIBDA margin increased to 33% (+5 pp yoy).
Net debt as of March 31, 2022, increased to RUB 93.0 billion (+64% compared to March 31, 2021) against a backdrop of payment of principal under the M&A transaction involving Inter Forest Rus and the Company’s payment of interim dividends for the first nine months of 2021.
CAPEX amounted to RUB 3.9 billion ($64 million), in line with the same period last year (+1% yoy).
Rovshan Aliyev, Segezha Group’s Vice President for Finance and Investment, said: “Our company delivered strong results for the 1Q of the year, due among other factors to successful completion of the consolidation of Inter Forest Rus, which brings together a number of high-quality forestry assets and forest resources. Amid high levels of uncertainty and persistent market volatility, our focus remains on ensuring uninterrupted operations at all of our assets and adapting the business to the new environment, which among other measures includes strengthening and developing business ties, signing new partnerships and reconfiguring logistics arrangements to meet business needs.”
Segezha Group is a leading Russian vertically-integrated holding company in the timber industry performing a full cycle of operations from logging to advanced wood.
