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Bergs Timber: Soft demand in Q1'23e - ABG

Q1'23 report on Thursday, 4 May
We expect sales to decline by 31%, clean EBIT of SEK -12m
Share is trading at ~9x P/E on 2024e


Q1'23 expectations

We expect Bergs to deliver a weak Q1 report, and foresee sales of SEK 624m, down 31% y-o-y. We expect lower demand for Sawn Wood and Wood Solutions due to a weaker construction market and a decline in DIY demand. We forecast sales of SEK 222m for Sawn Wood, far lower than last year's sales of SEK 346m. For Wood Solutions, we expect sales of SEK 183m. For Doors & Windows we forecast growth of 10% in Q1, which should contribute SEK 165m in sales. Energy and Logistics should contribute SEK 66m to sales. All in all, for the group, we foresee clean EBITDA of SEK 11m (82m) and clean EBIT of SEK -12m (61m). Finally, we expect a net profit of SEK -14m (63m).
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