Segezha Group’s FY 2016 revenue up 30.5 per cent

Photo: Segezha

Segezha Group’s revenue for FY 2016 grew by 30.5% year-on-year to RUB 43 billion ($764 million); in 4Q 2016, revenue grew by 36.3% to RUB 11.1 billion ($197 million).

Revenue for the full year 2016 grew due to increased production capacity, expansion of the sales footprint in paper sacks, and consolidation of results of Lesosibirsk Woodworking Plant No.1.

OIBDA 2016 increased by 37% and amounted to RUB 8.6 billion ($153 million). The OIBDA margin reached 20.1%. In 4Q, OIBDA totalled RUB 1.7 billion ($30.2 million), having grown by 60.9% year-on-year, while OIBDA margin was 15.6%.

OIBDA increased, among other reasons, due to LWP's contribution of RUB 1 billion ($17.7 million) the full year 2016 and the launch a new paper sack production facility in Salsk.

Segezha Group’s FY 2016 net income was RUB 1.6 billion ($28.4 million); 4Q net income was RUB 0.1 billion in. Net income decreased due to higher depreciation costs as a result of the implementation of the investment programme, and due to increased interest expenses.

Kamil Zakirov, Segezha Group President and Chairman of the Management Board said: "In 2016, Segezha Group demonstrated strong financial and operational performance. Growth of revenue and OIBDA was achieved by expansion of our production capacity, which enabled the company to increase sales in almost all business segments. A significant contribution came from our new asset, Lesosibirsk Woodworking Plant No.1, and from expansion of sales of paper sacks produced by our European plants to new markets in Africa, South America and the Middle East.”

 

Segezha Group is one of Russia's largest vertically integrated forestry holdings with a full cycle of logging and advanced wood processing.