Sveaskog (SVEA) Q2 2024 earnings summary

Executive summary

• Net sales rose 7% to 2,224 MSEK in Q2 2024, driven by an 11% increase in timber prices, while delivery volumes declined 2%.

• Operating profit increased 11% to 500 MSEK in Q2, with higher timber prices offset by increased harvesting and forest management costs.

• Net income for Q2 was 524 MSEK, up from 121 MSEK, with EPS at 4.43 SEK (1.03).

• For H1 2024, net sales grew 4% to 4,394 MSEK, and operating profit rose 8% to 1,092 MSEK.

• The company continues to focus on market efficiency, sustainable forestry, and balancing industrial, environmental, and social interests.

Financial highlights

• Q2 2024 net sales: 2,224 MSEK (+7% YoY); H1 2024: 4,394 MSEK (+4% YoY).

• Q2 operating profit: 500 MSEK (+11% YoY); H1: 1,092 MSEK (+8% YoY).

• Q2 net income: 524 MSEK (+333% YoY); H1: 924 MSEK (+20% YoY).

• Cash flow from operations in H1: 690 MSEK (703 MSEK prior year).

• Timber prices up 11% in Q2 and 12% in H1; delivery volumes down 2% in Q2 and 7% in H1.

Outlook and guidance

• Strong demand and high prices for all assortments expected to continue, especially for pulpwood and energy wood.

• The pulp market remains robust, while sawmills face challenges from high raw material costs and weak construction markets in Europe.

• Energy wood prices are expected to stay high into autumn as inventories are replenished.