Russian timber business Segezha reports 38 pct YOY revenue growth

By Andrei Skvarsky.

The revenue of Russian timber products manufacturer Segezha Group showed a year-on-year increase of 38 per cent as of the end of September, according to the company, which is part of Russian conglomerate Sistema.

Segezha had a revenue of 19bn roubles ($256m) for the third quarter of 2020, which was 38 per cent up on the same period in 2019, the company said in a statement in citing unaudited accounts based on international financial reporting standards.

Its operating income before depreciation and amortisation (OIBDA) for the third quarter of 2020 was 5.1bn roubles ($68.7m), which was more than twice as high as the amount for the same three months of last year.

For the period from January to September 2020, Segezha had a revenue of 50.2bn roubles ($719m) and an OIBDA of 11.3bn roubles ($161.8m), which marked year-on-year increases of 14.7 and 11 per cent respectively, according to the statement.

Besides a range of timber products, Segezha makes packaging paper and paper bags.

It plans to embark on the construction of multi-storey urban buildings from wood, thereby becoming Russia’s pioneer in joining a trend that has gained momentum in Europe and Japan.

The buildings would be made from cross-laminated timber (CLT) panels, blocks of solid-sawn timber glued together that are no less durable than concrete or other common building materials.

Late in October Segezha manufactured a test panel as part of a CLT project with a current budget of three billion roubles (about $40 at the current exchange rate).

Its areas of business include reforestation based on New Zealand technology.

Segezha maintains strong international presence.

It does business in several Western European countries and has solid positions in emerging markets, exporting some of its products to regions including Central and Eastern Europe, the Middle East, Latin America, Southeast Asia and North Africa.

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