Koskisen Corporation stock exchange release, March 16, 2023, at 08:30 a.m. EET
Koskisen achieved a record-high result in 2022 – towards the end of the year, demand for panel products partly offset the slowing down of the sawn timber market
This release is a summary of Koskisen Corporation’s financial statements release January–December 2022. The complete financial statements release is attached, and also available on the company’s website at koskisen.com/investors.
October–December 2022 in brief
• Revenue decreased and amounted to EUR 77.4 (92.1) million.
• EBITDA decreased and amounted to EUR 9.8 (22.9) million.
• EBITDA margin was 12.7 (24.9) per cent.
• Adjusted EBITDA amounted to EUR 10.7 (23.0) million.
• Adjusted EBITDA margin was 13,8 (24,9) per cent.
• Operating profit amounted to EUR 7.8 (19.8) million and was 10,1 (21.4) per cent of revenue.
• The profit for the financial period amounted to EUR 5,0 (15.3) million.
• Earnings per share was EUR 0,26 (0,88)
January–December 2022 in brief
• Revenue increased and amounted to EUR 317.7 (311.5) million.
• EBITDA improved and amounted to EUR 66,3 (62.2) million.
• EBITDA margin was 20.9 (20.0) per cent.
• Adjusted EBITDA amounted to EUR 66.6 (62.3) million.
• Adjusted EBITDA margin was 21,0 (20.0) per cent.
• Operating profit amounted to EUR 58,2 (52.7) million and was 18.3 (16.9) per cent of revenue.
• The profit for the financial period amounted to EUR 46,0 (38.5) million.
• Earnings per share was EUR 2.48 (2.32).
• Cash flow from operating activities amounted to EUR 47.2 (48.8) million.
The Board of Directors’ dividend proposal to the Annual General Meeting of 2023 is EUR 0.43 per share.
Profit guidance for 2023
The guidance for 2023 is in accordance with Koskisen Corporation’s listing prospectus dated 18 November 2022: Koskisen’s revenue for 2023 is not expected to exceed the level of 2022. The adjusted EBITDA margin is expected to be 12–14 per cent.
The profitability of the Sawn timber industry segment is expected to decrease compared to the level of 2022. The profitability of the Panel industry segment is expected to remain unchanged or improve compared to the level of 2022.
|Adjusted EBITDA, %||13.8||24.9||21.0||20.0|
|Operating profit (EBIT)||7.8||19.8||-60.3||58.2||52.7||10.4|
|Operating profit (EBIT), %||10.1||21.4||18.3||16.9|
|Profit for the period||5.0||15.3||-67.2||46.0||38.5||19.3|
|Earnings per share, EUR||0.26||0.88||2.48||2.32|
|Equity per share, EUR||5.9||9.3|
|Return on capital employed (ROCE), %||35.7||44.4|
|Working capital, end of period||28.9||37.0|
|Net cash flow from operating activities||47.2||48.8|
|Equity ratio, %||52.7||29.5|
The figures in brackets refer to the comparison period, i.e. the corresponding period the previous year, unless specified otherwise.
CEO Jukka Pahta:
I am proud and happy that the overall year 2022 is the best year in the company’s history. The record-high result further strengthens the company’s solvency and financial position. This will support the implementation of the investments that are already underway and have been decided, as well as the implementation of the company’s growth strategy.
During the fourth quarter of 2022, the Group’s revenue and profitability were at a lower level than in the comparison period, but profitability remained at a good level, considering the circumstances. Full-year revenue increased by 2 per cent to EUR 317.7 million. Adjusted EBITDA was slightly better than in the comparison period: it improved by 7 per cent to EUR 66.6 million.
Demand in the Panel Industry, especially in birch plywood products, remained strong, and this was reflected both in delivery volumes and further strengthened average price of products. The raw material situation was tight in birch. Demand for sawn timber continued to weaken as general market uncertainty increased, and prices were declining in the second half of the year. The price of softwood and birch logs has remained high.
The company is currently carrying out an investment of approximately EUR 50 million in a new wood processing unit in Järvelä. The new unit, which will be commissioned in phases starting in summer 2023, will include saw feed with debarking, sawing operations, green sorting of sawn timber and stick-stacker, commissioned in summer 2022. The implementation of the investment has progressed as planned. The basis of the new wood processing unit is high efficiency and the optimum utilisation of raw wood materials.
The new wood processing unit will significantly improve Koskisen’s competitiveness in the sawn timber business; it will improve productivity and profitability. At the same time, it is an investment in our ability to serve our customers even better, especially in markets that require high quality, such as Japan. The new Järvelä unit is expected to increase Sawn timber’s current annual production capacity of 300,000 cubic metres of sawn timber to 400,000 cubic metres starting from 2024.
The company also invested in material efficiency at the plywood factory in Järvelä by building a new spindleless veneer peeling line. The new veneer peeling line improves the efficiency of the use of wood raw material and improves the possibilities of using a smaller log diameter in the manufacture of veneer. The value of the investment is approximately EUR 2 million. The installation of the peeling line will begin in August 2023. The objective is to have the new line in production use in late 2023.
In its operations, Koskisen systematically invests in solutions that make it possible to efficiently utilise wood raw material, irrespective of the size class. Thus, it will be possible to use smaller diameter log classes for the manufacture of products that bind carbon for a long time. The investments in raw material efficiency also bring new opportunities with regard to the availability of raw materials and help ease the increasingly short supply of raw materials, especially of birch.
In early 2022, Koskisen launched the world’s first 100% wood-based furniture panel, Zero. In the new panel, both the basic raw material sawdust and the cohesive binder come from the side streams of the domestic forest industry. The test runs of the new furniture panel at the end of the year have gone according to plan and customer interest has been very positive. The Zero furniture panel will enter commercial production during the second half of 2023.
Koskisen Corporation was successfully listed on the main list of Nasdaq Helsinki Oy on 1 December 2022. Investor demand was strong in the IPO, and the Initial Public Offering was oversubscribed. In the public offering, subscriptions were received from more than 4,000 investors. The company received gross proceeds of approximately EUR 32 million from the IPO. The IPO allows the company to implement its growth strategy; we make investments to ensure our competitiveness in the long term and achieve the strategic goals set for 2027.
A webcast (in Finnish) in relation to Financial Statements Release 2022 will be held today on 16 March 2023 at 10:00 a.m. The webcast can be followed at koskisen.com/webcasts. The presentation material and a recording of the webcast will be available on the company’s website afterwards.
For further information, please contact:
Jukka Pahta, CEO, Koskisen Corporation
puh. +358 20 553 4561
Sanna Väisänen, Director, Sustainability and Communications, Koskisen Corporation
puh. +358 20 553 4563
Koskisen is an international wood processing specialist with more than a century of experience and known for its agility and ability to listen to the customer. We utilise our valuable wood raw material as thoroughly as possible, up to the last particle of sawdust. At the same time, we bring the best carbon narrative to life: We manufacture high-quality and sustainable products that store carbon for decades. The Group’s revenue in 2022 was EUR 318 million. Read more: koskisen.com