Bildkälla: Stockfoto

Bergs Timber: Somewhat smaller, but much stronger - SEB

The divestment of the Swedish sawmills has reshaped the company
On 1 September Bergs divested its Swedish sawmill operations to Vida in order to refocus on its more stable and profitable further processing business and its Baltic sawmill operations. In 2019 the sold operations had sales of SEK 1,150m (36%), adjusted EBITDA of SEK 39m (25%) and an EBITDA margin of 3.4%. The continuing operations had an adjusted EBITDA margin of 5.6%. As a result of the divestment, the company was practically debt free by the end of Q3 (SEK 11m of net debt), which leaves potential to further develop the remaining business both organically and through M&A.

Strong Q3 and positive outlook
Q3 adjusted EBITDA from continuing operations was SEK 53m, up from SEK 21m in Q3 2019 and SEK 52m in Q2 2020. It was above our forecast of SEK 42m, as well. The adjusted EBITDA margin of 10.2% increased from 4.5% in Q3 2019 and 9.5% in Q2 2020. The company said that it sees no weakening of demand and that order inflow remains good.

EBIT increased 7% in 2020E, 4% in 2021E and 4% in 2022E
We have increased our forecast EBIT (from continuing operations) by 7% in 2020, 4% in 2021 and 4% in 2022.

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