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Third party research

Bergs Timber Q2'23: initial thoughts - ABG

Bergs Timber

This is a third party research report and does not necessarily reflect our views or values

Download report (PDF)
• Clean EBITDA SEK 23m vs. ABGSCe SEK 22m
• Decided to close its sawmill in Estonia...
• ... Burdens result with SEK -40m

Q2'23 results
Net sales came in at SEK 793m (5% vs. ABGSCe SEK 753m). Wood Solutions contributed with SEK 254m (-7% vs. ABGSCe SEK 273m), while Sawn Wood sales were SEK 287m (14% vs. ABGSCe SEK 252m). Moreover, Doors & Windows sales were SEK 199m (2% vs. ABGSCe SEK 195m) and Energy & Logistics sales were SEK 55m (ABGSCe SEK 33m). Clean EBITDA for the group was SEK 23m (vs. ABGSCe SEK 22m) and clean EBIT was SEK -2m (vs. ABGSCe SEK 0m). Net profit was SEK -40m (ABGSCe SEK -1m), whereof SEK -40m is impairment and cost of closure from the decision to close its sawmill in Estonia. On outlook, margins for Sawn wood are expected to continue to be low during the fall.

Estimate changes
On the Q2 numbers alone, this would imply positive clean EBITDA revisions of 1% in '23e.

Valuation
On our pre-Q2 report estimates and yesterday's closing price, the share is trading at ~2x '24e EV/EBITDA and ~5x '24e P/E.
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