Sveaskog's Q4 2023 net sales decreased by 3% to SEK 1,990 million ($189 million), compared to SEK 2,044 million ($195 million). Prices of wood raw materials increased by an average of 12%, while total delivery volumes decreased by 15%.
Q4 2023 operating profit increased by 22% and amounted to SEK 199 million ($19 million), compared to SEK 254 million ($24.2 million). Higher timber prices have been offset by lower volumes from Sveaskog’s own forest, as well as increased costs for felling and processing after the storm Hans.
Profit for the Q4 2023 after dividends amounted to SEK 2,750 million, equivalent to SEK 23.23 ($2.2) per share.
1 January – 31 December 2023
FY 2023 net sales increased by 1% to SEK 7,863 million ($750 million), compared to SEK 7,760 million ($740 million). Prices of wood raw materials increased by an average of 14%, while total delivery volumes decreased by 13%. Operating profit increased by 5% and amounted to SEK 1,429 million ($136 million).
Profit for the year after dividends amounted to SEK 3,562 million ($340 million), equivalent to SEK 30.08 ($2.9) per share.
Comments from Sveaskog's President and CEO Erik Brandsma: “Global demand for timber is continuing to fall and sawmills around the world are reducing their production of sawn timber. According to official price statistics for the quarter, prices of wood products have fallen slightly, but they remain at a historically high level. The supply of fibre raw materials remains limited and interest in forest-based biofuel deliveries remains very high. Price levels for fuel chips and energy wood deliveries have developed well during the year. During the year, Sveaskog prioritised deliveries to customers and despite the fact that the shortage of raw materials during the year led to concerns in the market and a tough situation for many sawmills, we look to the future with confidence.
“During the fourth quarter of the year, we launched our new strategic direction, thereby laying the foundation for the coming years. Sveaskog’s overall, long-term vision is to be the world leader in sustainable value creation in the forest. In order to achieve this, we strive to make the best use of the assets that are our forest and land, while at the same time meeting current climate and environmental objectives and balancing ecological, economic and social values. Although Sveaskog’s primary business continues to be forestry, we plan to take an increasingly active role in the value chain, including by increasing revenues through land use.”
Sveaskog, a state-owned company, is the largest forest owner in Sweden. The company owns 14% of Sweden’s forests, operates in 170 municipalities and has around 800 employees throughout the country.
