January–June 2022 compared with January–June 2021
*Net sales amounted to SEK 10,914m (8,982). The increase was mainly attributable to high demand for SCA’s products, higher selling prices and increased sales to core markets. Through its own logistics company, SCA has a unique control over logistics from the forest to the customer, which has benefited delivery reliability in a turbulent period.
*EBITDA improved 58% to SEK 5,729m (3,619). The increase was mainly attributable to higher selling prices in all product areas while a high degree of self-sufficiency in wood, energy and logistics enabled good cost control. EBITDA margin increased to 52.5% (40.3).
*Valuation of SCA’s forest assets increased to SEK 87.9bn compared to SEK 84.5bn at year-end previous year due to further increased prices on forest assets in Northern Sweden
*Operating profit increased to SEK 4,958m (2,927)
*Operating cash flow strengthened to SEK 3,085m (1,581) and thereby continued to finance ongoing strategic investments
*Earnings per share was SEK 5.50 (3.20)
Earnings for the second quarter of 2022 were the highest ever. The improvement compared with the preceding quarter and the year-earlier quarter was mainly attributable to strong demand for SCA’s products with higher sales to core markets, in particular Scandinavia and Central Europe, and higher selling prices.
Higher inflationary pressure has resulted in increased costs for input goods and logistics services. Good control over SCA’s own value chain and a high degree of self-sufficiency in wood and energy largely offset the cost increases resulting from rising inflation. Through its own logistics company, SCA also has unique control over logistics from the forest to the customer, which benefits both delivery reliability and cost control.
The supply of wood raw material to SCA’s industries was stable during the quarter. The price of pulpwood increased while the price of saw logs was in line with the preceding quarter.
Selling prices for solid-wood products increased compared with the preceding period and delivery volumes were at normal levels. Demand for building materials from private individuals was weaker while demand from new construction was favorable.
Demand in the Pulp segment remained at a good level with higher selling prices and increased delivery volumes compared with the preceding quarter. The CTMP (chemi-thermomechanical pulp) expansion project at the Ortviken site in Sundsvall is progressing on time and on budget.
Demand for kraftliner was strong during the period. Average selling prices increased compared with the preceding quarter. A planned maintenance stop was carried out at the Obbola mill in Umeå during the period. Operating trials for the new paper machine will begin this autumn, which is earlier than planned. The earlier-than-scheduled trials create positive conditions for a successful project (see page 5).
further detail at: https://www.sca.com/en/about-us/Investors/press-releases/2022-07/interim-report-q2-2022/