SCA reports best-ever earnings10 August 2022
Swedish forest products giant SCA reported its highest earnings ever in the second quarter.
The company attributed the performance – which shows EBITDA of SEK5.72bn (2021 Q2: SEK3.61bn) – to strong demand for its products.
Its wood division delivered less wood than a year ago – 535,000m3 for Q2 – but net sales were up 25% to SEK2.2bn, while EBITDA grew 49% to SEK933m. The higher selling prices and positive exchange rate effects during the period boosted the performance.
The half-year performance was up 29% and 67% in terms of net sales and EBITDA respectively.
SCA reported that demand for building materials from private individuals was weaker in Q2 while demand from new construction was favourable. The supply of wood raw material to SCA’s industries was stable during the quarter, with the price of saw logs in line with the preceding quarter.
The group has an ongoing investment programme to acquire 100,000 hectares of forest land in the Baltic states. At the end of Q2, SCA had a holding of about 51,000 hectares of forestland in the Baltic states.
“The acquisitions will strengthen SCA’s long-term opportunities to source timber in the region,” it said.