Segezha Group officially announces steady growth in 2021. One of the leading vertically integrated holding companies in the timber industry experienced a Revenue growth by 34% to RUB 92.4 billion.
And after performing a full cycle of operations from logging to advanced wood processing, announces its consolidated audited IFRS financial results and operating results for the 12 months of 2021 (FY 2021).
- Revenue totalled RUB 92 bn, a 34% increase year-on-year (yoy), amid a recovery in global demand and higher average selling prices for the Group’s products.
- OIBDA reached RUB 29 bn, a 68% increase yoy, driven by the company’s integrated business model, revenue growth, and cost optimization by management.
- The OIBDA margin increased to 32% (+7 pp yoy).
- Net profit totalled RUB 15 bn, compared to a net loss of RUB 1.3 bn in the previous year, due to high operating efficiency, growth of revenue and business margins, and FX gains.
In 4 sq. In 2021, there were multidirectional trends for the company’s key products, the Segezha Group report says. In the sack paper segment, the shortage of supply continued to widen: the decrease in production and increase in costs in the industry was affected by the increase in energy prices in Europe. European manufacturers raised prices for their products, so-called “energy surcharges” continued to operate.
Despite the seasonal decline in prices for sawn timber (-22% qoq), birch plywood and KDK by 12% and 24% qoq. 2021, respectively, product prices remained at record highs. At the same time, high prices for raw materials remain in Europe and the Russian Federation. Thus, the average prices for coniferous sawlogs in Russia in the 4th quarter.
2021 amounted to RUB 6,167/m3 (+52% YoY). An additional driver of price growth was the inflation of logistics costs around the world against the backdrop of container shortages, congestion in ports and disruptions in global supply chains.
