The strong international demand for wood products continues to drive revenue growth for the timber industry. “The global market can’t get enough of wood products now, and this continues to characterise demand. At the same time we are seeing more normal seasonal developments on the domestic market,” says CEO Morten Kristiansen of Moelven Industrier ASA.
Moelven reported revenue of NOK 3950.5 million in Q3 2021. This is an increase of NOK 1283.3 million from the revenue figures in Q3 2019. The operating profit was 1142,5 million, compared to NOK 163,4 million in the corresponding period last year. This is Moelven’s strongest quarterly result of all time. After the first nine months of the year Moelven’s operating profit was NOK 2255,5 million with a gross operating margin of 22.5%.
“The strong cyclical development for wood products we have seen over the past year continues, but it remains uncertain as to how long the strong demand will last. It is in times of plenty we must develop, so that we’re ready when life returns to normal,” Kristiansen says.
The American market still has a strong need for wood products. Americans continue to pick up goods from Europe, which also has a strong demand for the same goods. As a result, price developments have been strong almost throughout the quarter.
In the building products trade on the Scandinavian markets activity has been somewhat slower, which is in line with expectations. In the businesses engaged in glulam, building modules and system interiors, the market situation is stable.
“Overall this has resulted in margins Moelven has rarely seen, and that provide a unique window of opportunity to modernise and develop our industries. This allows the industry to catch up with future needs for climate-smart solutions. We don’t know how long this boom will persist, but we are certain that renewable construction materials will be no less in demand in the years ahead,” Kristiansen says.
The Moelven Group launched its new brand in October. Behind the launch are three years of insight, analysis and project work.
"In the years that have passed since the last visual change, Moelven has continued to develop and focus its activities towards wood-based industry and climate-smart solutions. We are committed to ensuring that our identity reflects what we are doing today and where we want to be in the future. Therefore, we found it was the right time for a refurbishment job,” Kristiansen says.
In the same month it was also announced that the Moelven Group sold 100 per cent of the shares in Moelven Modus AB to the Swedish investment company Mimir Capital AB. This means that the office and system interiors company changes hands, and will continue operations under a new name.
Read the quarterly report for Q3 2021 here (PDF).