Sveaskog’s Year-end Report January-December 2021: The market for sawn timber remains strong

Our operating profit during the year amounted to MSEK 1,341 (1,120); the increased profit is primarily due to a new method for valuing forest assets. The new method means that costs for reforestation, MSEK 235, from this year are recognised under change in value of forest assets. New method aside, the profit is somewhat lower compared to the previous year.

1 January – 31 December 2021

  • Net sales increased by five per cent to MSEK 6,920 (6,597). The total delivery volumes increased marginally while the prices of wood raw materials increased by five per cent on average.
  • Operating profit increased by 20 per cent to MSEK 1,341 (1,120). Higher timber prices have been offset by higher costs for felling as well as forest- and nature conservation. The increased profit is primarily due to a new method for valuing forest assets. The method change means that costs for reforestation, MSEK 235, from this year are recognised in the item change in value of forest assets. Method change and increased provisions for forest management and bridges on our forest roads, the underlying result is MSEK 58 better than the previous year despite increased nature conservation costs.
  • The reported net change in value of standing timber amounted to MSEK -196 (12,481).
  • Profit for the year amounted to MSEK 1,494 (10,867), equivalent to SEK 12.62 (91.78) per share.  

Comments from Sveaskog's President och CEO Erik Brandsma:

“It has been a few weeks since I took over as CEO of Sveaskog and this is my first report. In a company like Sveaskog, business with our customers is key. To be profitable and successful in business, a long-term perspective is required on how we manage our forests. Competition for the forest and forest products is increasing. We need to future-proof ourselves as a company in the long term by understanding increasing demands and expectations, making trade-offs between different goals and developing our competence and business model. A business needs to be secured in both the short and long term – so that the business is good in the future as well.”

“The forest sector is facing a transition. The long-term focus and the programme that Sveaskog has adopted for sustainable forestry is a good platform for driving the work forward.”

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Contact us

Erik Brandsma, President and CEO Sveaskog, +46 (0)10 471 81 50
Kristina Ferenius, CFO Sveaskog, +46 (0)10471 81 11
Sveaskog's press service, +46 8 655 90 50, press@sveaskog.se