Segezha Group announces its unaudited consolidated financial results for the 3Q and first nine months (9M) of 2020. 3Q 2020 revenue grew by 38% year-on-year to RUB 19 billion ($255 million).
Segezha reported 3Q 2020 net loss of RUB 3.4 billion ($45.7 million) from net income of RUB 0.2 billion ($2.7 million) a year ago on higher logistics prices, lower construction product demand.
3Q 2020 OIBDA grew by 106.9% year-on-year to RUB 5.1 billion ($68.5 million). The OIBDA margin was 26.7%, up 8.9 p.p. year-on-year.
Mikhail Shamolin, President and Chairman of the Management Board of Segezha Group, said: “In 3Q 2020, OIBDA increased across all Group segments: Paper and Packaging grew by 1.5x, Woodworking by 8x, and Plywood and boards more than doubled. This significant OIBDA growth was driven by higher sales of paper and sawn timber, as well as by an increase in the share of high-margin products in the Group’s portfolio. Systematic implementation of measures to keep cost growth down while at the same time increasing production volumes plays an important role in enhancing company efficiency. Our financial results were supported by significant year-on-year increases in average exchange rates versus the ruble, with the Euro rising by 20% and the US dollar by 14%.
“In 3Q 2020, the Group continued to execute its investment programme, while keeping the net debt to LTM OIBDA ratio at 3.3x. In 3Q 2020, capex totalled RUB 2.9 billion ($39 million). The majority of investments were made to modernise existing production facilities in order to increase production volumes and reduce production costs. We invested RUB 0.5 billion ($6.7 million) into the implementation of the SAP S/4HANA system in order to enhance operational efficiency, competitiveness and further transform Segezha Group.”
In 3Q 2020, the Company achieved a record level of own wood resources, at 85.6% The Company logged 1,246,900 m3 of wood in 3Q, up 8.7% year-on-year. This was made possible due to timely investments into our fleet of harvesters and haulers.
Segezha Group is a subsidiary of Sistema PJSFC and is a Russian vertically integrated holding company in the forest industry.
Source: Lesprom Network