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Koskisen performs well against market odds

 Friday, August 25, 2023

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Koskisen continues to strengthen its panel industry business segment amidst the challenging market conditions. The company’s Half-Year Report January-June 2023 has pointed out the fact that the sales of the wood products manufactured by Koskisen have been good and in line with plans. Despite the subdued market conditions, the second quarter of the year was a good period for Koskisen, as the Group’s profit performance remained largely unchanged from the first months of the year. Although profitability declined compared to the record-breaking reference period, with adjusted EBITDA amounting to EUR 13.7 (28.1) million, it improved slightly from the first quarter of the year. The adjusted EBITDA margin in the second quarter was 18.5% (29.9%).

The company feels quite satisfied with the performance of the Panel industry in the second quarter. Profitability improved in all product categories as the segment achieved an EBITDA of EUR 12.2 (8.4) million. The production of panel products has gone according to plan and even the demand has been strong, particularly for plywood products.

In the Panel Industry segment, installation work on the new veneer peeling line began slightly ahead of schedule. The company’s aim is to improve the efficiency of wood used at the plywood mill to upgrade the manufacturing process. The Panel Industry segment has also begun preparations for starting the commercial-scale production of Zero, a completely wood-based furniture board, during the second half of the year.

The profitability of the Sawn Timber Industry segment was at a weak level, but it can be considered satisfactory in light of the current situation in the industry. Koskisen has not limited the production in the second quarter maintaining the level of the Sawn timber production. The company reports that while the sales prices agreed for the second quarter initially showed a rising trend, they subsequently turned to a decline and began approaching the levels seen in the first quarter.

The company further plans to expand its business with a fruitful investment of approximately EUR 15 million to provide significant support for the Sawn Timber segment’s growth. The wood procurement has been developed in accordance with the company’s plan. Koskisen’s Half-Year Report January-June 2023 reports a marked profitable growth that might not be of great stature but is no doubt a praise-worthy one.

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