en

Financial targets

A new wood processing unit, product development, inorganic growth and a highly competent sales organization are the next strategic focus areas for the strategy period ending at the end of 2027

New state-of-the art wood processing unit

Koskisen is currently building the new Järvelä unit, where production is expected to begin in stages during 2023 and 2024. Operative efficiency is estimated to improve by 40 percent in the sawing process as a result of increased automation and higher production capacity compared to Koskisen’s current processing unit. The new Järvelä unit is expected to increase Sawn Timber Industry business segment’s current 300,000 cubic meters annual production capacity of sawn goods initially to 400,000 cubic meters of sawn softwood. In the future, Koskisen may increase the annual production capacity in Järvelä, Finland, up to 500,000 cubic meters through limited investments.

Product development

Koskisen seeks to continuously develop new solutions in order to stay up to date in the evolving wood products industry and to maintain and enforce customer relationships by offering new tailor made products to customers.

Inorganic growth through mergers and acquisitions

In addition to organic growth, Koskisen aims to execute carefully selected acquisitions that would primarily target growth.

Highly skilled sales organization

Koskisen’s sales organization consists of its own sales personnel and a network of sales agents located in several foreign markets. Direct sales to customers play an important role in achieving higher margins, as direct sales to customers allow better management of customer relationships and offering tailor made products according to customer needs. The key focus area is to identify customers, products and geographies in which Koskisen can offer value added products and services in the long term.

Financial targets for 2027

  • Growth: revenue EUR 500 million, including both organic and inorganic growth
  • Profitability: adjusted EBITDA margin 15 percent in average over cycle
  • Balance sheet: maintaining strong balance sheet

Profit forecast

20221

  • Revenue approximately EUR 310 million
  • Adjusted EBITDA margin 21-23%

20231

  • Revenue will not exceed the revenue level of 2022
  • Adjusted EBITDA margin 12-14%
  • Panel Industry business segment’s profitability will remain at the level of 2022 or improve compared to the level of 2022
  • Sawn Timber Industry business segment’s profitability will decrease compared to the level of 2022

As of 2024

  • The new Järvelä unit will increase Koskisen’s revenue and profitability
  • The new unit will the Sawn Timber Industry business segment’s EBITDA annually by EUR 8 million as of 2024. Koskisen’s profit forecast is based on the estimates and assumptions of the Company’s management regarding the development of the Company’s revenue, profit and operating environment.1

1) Koskisen’s profit forecast is based on the estimates and assumptions of the company’s management regarding the development of the company’s revenue, profit and operating environment. The profit forecast for 2022 is based in particular on the development of the company’s business during the first three quarters of 2022 and on the estimated development of the business in the last quarter of 2022 based on the data available to the company. Profit forecast for 2023 is based in particular on the estimated development of profitability and demand in the Panel Industry business segment in 2022, as well as on the estimated decrease in prices in the Sawn Timber Industry business segment. Key factors affecting the forecasts, that the company may affect, are the productivity and efficiency of the company’s own operations. Factors beyond the company’s control relate, in particular, to general economic development, the escalation of the global political situation, rising inflation and interest rates, and their impact on the potential increasing uncertainty on the demand for the company’s products. Uncertainty, both in terms of revenue and costs, is exacerbated, in particular, by the ongoing war in Ukraine and the effect of inflation increasing prices or decreasing consumer demand.