Koskisen Corporation stock exchange release, February 17, 2025, at 08:30 a.m. EET
Koskisen's revenue increased - Increased delivery volumes and the strengthening of prices year-on-year in Sawn Timber Industry
This release is a summary of Koskisen Corporation's Financial Statements release 2024. The complete Financial Statements is attached, and also available on the company's website at koskisen.com/investors.
October-December 2024 in brief
· Revenue increased and amounted to EUR 73.0 (68.7) million.
· EBITDA increased and amounted to EUR 5.6 (5.3) million.
· The EBITDA margin was 7.7 per cent (7.6).
· Adjusted EBITDA amounted to EUR 5.7 (5.5) million.
· The adjusted EBITDA margin was 7.8 per cent (8.0).
· Operating profit amounted to EUR 2.5 (3.0) million and was 3.5 per cent (4.4) of revenue.
· The profit for the financial period amounted to EUR 1.5 (2.6) million.
· Basic earnings per share were EUR 0.07 (0.11).
January-December 2024 in brief
· Revenue increased and amounted to EUR 282.3 (271.3) million.
· EBITDA decreased and amounted to EUR 24.2 (33.0) million.
· The EBITDA margin was 8.6 per cent (12.2).
· Adjusted EBITDA amounted to EUR 24.3 (33.1) million.
· The adjusted EBITDA margin was 8.6 per cent (12.2).
· Operating profit amounted to EUR 13.0 (24.4) million, representing 4.6 per cent (9.0) of revenue.
· The profit for the financial period amounted to EUR 8.3 (20.2) million.
· Basic earnings per share were EUR 0.36 (0.88).
The figures in brackets refer to the comparison period, i.e. the corresponding period in the previous year, unless specified otherwise.
Dividend proposal
The Board of Directors proposes to the Annual General Meeting to be held in spring 2025 that a dividend of EUR 0.12 per share be paid.
Profit guidance for 2025
Koskisen Group's revenue for 2025 is expected to grow from the level of 2024. The adjusted EBITDA margin is expected to be 7-11 per cent.
Key figures
EUR million | 10-12 2024 | 10-12 2023 | Change, % | 1-12 2024 | 1-12 2023 | Change, % | |
| Revenue | 73.0 | 68.7 | 6.2 | 282.3 | 271.3 | 4.1 | |
| EBITDA | 5.6 | 5.3 | 7.6 | 24.2 | 33.0 | -26.7 | |
| EBITDA margin, % | 7.7 | 7.6 | 8.6 | 12.2 | |||
| Adjusted EBITDA | 5.7 | 5.5 | 3.9 | 24.3 | 33.1 | -26.7 | |
| Adjusted EBITDA margin, % | 7.8 | 8.0 | 8.6 | 12.2 | |||
| Operating profit (EBIT) | 2.5 | 3.0 | -14.8 | 13.0 | 24.4 | -46.6 | |
| Operating profit (EBIT) margin, % | 3.5 | 4.4 | 4.6 | 9.0 | |||
| Profit for the period | 1.5 | 2.6 | -40.0 | 8.3 | 20.2 | -59.0 | |
| Basic earnings per share, EUR | 0.07 | 0.11 | 0.36 | 0.88 | |||
| Diluted earnings per share, EUR | 0.07 | 0.11 | 0.36 | 0.87 | |||
| Gross investments | 5.0 | 12.8 | 22.2 | 32.1 | |||
| Equity per share, EUR | 6.5 | 6.4 | |||||
| Return on capital employed (ROCE), % | 6.1 | 12.1 | |||||
| Working capital, end of period | 45.9 | 37.9 | |||||
| Net cash flow from operating activities | 14.0 | 14.9 | |||||
| Equity ratio, % | 54.0 | 54.8 | |||||
| Gearing, % | 15.4 | -1.8 | |||||
CEO Jukka Pahta:
Koskisen Group's fourth-quarter profitability improved year-on-year, with adjusted EBITDA amounting to EUR 5.7 (5.5) million. The adjusted EBITDA margin was 7.8 per cent (8.0). Achieved in a challenging market situation, the result can be considered to be good.
There were hardly any positive signs visible in the operating environment: the recovery in construction was yet to be seen, and the economic situation in the important Central European market, especially Germany, remained weak. Despite this, our result in 2024 were in line with the profit guidance provided at the beginning of the year.
In the last quarter, the profitability of the Sawn Timber Industry segment improved substantially year-on-year, with EBITDA amounting to EUR 3.3 (1.0) million. Production volumes increased from the third quarter and we were able to maintain the average annual production level of 400,000 m3 set for the new investment. Shift-specific production is still below target and its development continues. The price level of sawn timber remained at the same level as in previous quarters, but the very high raw material price continued to burden profitability.
The capacity and test runs of the new log yard were carried out in January. The transport of sawn logs from the old log yard will end fully by the end of February. Locating Sawn Timber Industry's operations on the same plot improves the efficiency and productivity of sawn timber production and significantly reduces logistics costs and carbon dioxide emissions caused by transport. Overall, the new sawmill and related operations are among the most efficient units in the industry.
Wood procurement was carried out as planned. Wood reserves and inventories were slightly higher than normal at the turn of the year, which was reflected in committed working capital. This guarantees us security of supply, but also flexibility in the purchase of raw materials. Demand for energy fractions was lower than normal due to the warm early winter, but their prices remained stable.
The profitability of the Panel Industry segment decreased year-on-year, with EBITDA amounting to EUR 2.5 (4.7) million. Profitability has been impared in particular by the high price of raw materials. Profitability was also affected by the ramp-up of the new production unit of the Kore business in Poland, stock-take differencies in spareparts inventory and write-downs on accounts receivable. The weak situation in construction was particularly reflected in the demand for chipboard, and production was restricted through temporary layoffs. The order book in plywood remained stable during the second half of the year, albeit lower than in the first half of the year. The prices of panel products remained stable.
The investment in the Kore business proceeded as planned and the ramp-up of production to industrial scale began. The investment supports the expansion of Kore's product range into new end-uses and the expansion of the current market area. After the ramp-up phase, Skwierzyna will focus on stabilising production and optimising efficiency between the two Polish units, Toporow and Skwierzyna.
We launched a comprehensive investment programme in plywood production in the Panel Industry business in Järvelä. The investment programme will run until the end of Koskisen's strategy period, i.e. 2027. The first phase of the investment programme will be carried out in 2025 and the total value of the related investments will be approximately EUR 12 million. The main objective of the investment program is to improve the productivity, quality, and yield of plywood production through automation. This is how we will continue to create sustainable growth, and the focus of development investments in our own operations will shift to the Panel Industry segment in 2025.
Webcast
A webcast (in Finnish) in relation to Financial Statements release 2024 will be held today on 17 February 2025 at 10:00 a.m. EET. 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
jukka.pahta@koskisen.com
puh. +358 20 553 4561
Media enquires:
Sanna Väisänen, Director, Sustainability and Communications, Koskisen Corporation
sanna.vaisanen@koskisen.com
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. We manufacture high-quality and sustainable circular bioeconomy products that store carbon for decades. The Group's revenue in 2024 was EUR 282 million. Read more: koskisen.com
