SCA’s wood division posts 12% net sales growth in 2021
31 January 2022The divestment of SCA Wood Supply UK had a restraining effect on annual sales in SCA’s wood decision, according to the company’s newly-published annual results.
Net sales increased 12% to SEK7.08bn (2020: SEK6.29) for the full year 2021, with the increase primarily relating to higher selling prices, which were offset by the divestment of Wood Supply UK during Q4, 2020.
Wood Supply UK manufactured and distributed wood and wood-based products for the building materials trade in the UK and the sale of the business reduced SCA’s wood division’s net sales by about SEK1,400bn per year and EBITDA by approximately SEK25m per year.
The UK remains a core market for sales of solid-wood and processed wood products for SCA and
SCA’s wood division recorded earnings before interest, tax, depreciation and amortisation (EBITDA) of SEK2.98bn (2020: SEK657m), up by 352% on the previous year mainly due to higher selling prices.
For Q4, 2021 net sales increased 25% to SEK1.86bn (2020 Q4: SEK1.49bn).
Deliveries reduced by 19% to 2.06 million m3 (2020: 2.55 million m3).
SCA is one of Europe’s leading suppliers of wood-based products for the wood industry and building materials trade, with an annual production capacity of 2.2 million m3 of solid-wood products. SCA has five sawmills located close to its forest holdings in Northern Sweden, as well as wood processing and distribution to the building materials trade in Scandinavia and France.
SCA’s wider group results, incorporating all aspects of the business, showed net sales of SEK18.82bn (2020: SEK18.41bn), an increase of 2%, of which price/mix accounted for 28%, discontinuations -15%, divestments -9%, currency -3% and volume 1%.
Excluding the negative effects from the discontinuation of publication paper operations and the divestment of Wood Supply UK in the fourth quarter of 2020, net sales increased by 26%.
EBITDA increased to SEK9.10bn (2020: SEK4.44bn), corresponding to an EBITDA margin of 48.4%. The change was mainly attributable to higher selling prices in all product areas and a good productivity development, which were partly offset by negative exchange rate effects.
