Segezha Group increased revenue by 15%
The past year was relatively good for large Russian forest producers. So, Segezha Group increased the revenue by 15%, OIBDA – by 8%, and logging – by 18%, although it increased clean loss. But this year, market participants expect a deterioration in the situation due to weak demand, increase in logistics and reducing prices in key markets.
One of the largest Russian forestry companies in Segezha Group in 2024 increased most production indicators. Logging increased by 18%, to 8.6 million cubic meters, of which its own workpiece was 67%. The production of paper increased by 12%, to 360 thousand tons, lumber – by 10%, up to 2.3 million cubic meters, birch plywood – by 6%, up to 183 thousand cubic meters.
According to Segezha Group, in 2024 the average world price for lumber increased by 2.4%, to $ 168 per cubic meter. But this is significantly less than in the peak of 2021 ($ 284 per cubic meter). The group also indicates a positive dynamics of prices for lumber in the first quarter of 2025 in China against the backdrop of a decrease in warehouse levels (for deliveries to China, 77% of the group’s lumber sales last year). In 2025, the company plans to increase sales in the segment and expand the geography of supplies.
However, the average paper prices last year decreased by 4.5% of the year, to $ 600 per ton. Also, under pressure, there was a plywood segment due to low demand against the background of poor activity in the construction segment and high competition in export markets, noted in Segezha Group.
Segezha Group revenue in IFRS increased by 15%, to 102 billion rubles. The main contribution was made by the woodworking segment (46.3 billion rubles, an increase of 14%). The OIBDA indicator for the first time in two years showed positive dynamics, increasing by 7.8%, to 10 billion rubles. Pure loss grew by a third, to 22.3 billion rubles, Capex decreased by 7%, to 7.2 billion rubles.
Alexander Tsybulsky, Governor of the Arkhangelsk Region, April 14:
“Still, a number of areas of the forestry industry are still in such a borderline state today.”
As explained in Segezha Group, the money went mainly to maintain current activities. Pure debt at the end of the period was at the level of 147.9 billion rubles. Against 143.5 billion rubles. a quarter earlier.
Other sector companies also note the growth of key indicators, but indicate the difficulties that the industry will face in 2025. “Last year, we finished with a positive result mainly thanks to the transport subsidy. This year, with this course, the yuan and the price level in the Chinese market are not waiting for anything good, especially in the lumber segment, ”Dmitry Gvozdev, general director of Region-Les, explained to Kommersant.
He also noted a strong rise in the price of logistics in connection with a decrease in imports from China. In this situation, he considers it necessary to subsidize traffic through the ports of the North-West. The head of the Committee of the Arkhangelsk Legislative Assembly, Alexander Dyatlov, notes that in 2025 the limit of the transport subsidy per company was reduced from 300 million to 200 million rubles.
Andrei Zubov, Chairman of the Board of the Forestry Union of the Forestry of the Arkhangelsk Region, says that last year small and medium -sized enterprises mainly worked on the domestic market, since exports to China and friendly countries became risky and not predicted.
According to him, since the beginning of this year, the situation has worsened due to a fall in prices, growth in logistics costs, as well as the growth of the ruble exchange rate.
Igor Novoselov, consultant of the Forest Problem -Minor Analyst Analyst Analysting Analyst Analysting, emphasizes that the inflationary component and increase in operating costs of LPK enterprises are the main factors of production growth in monetary terms. And the indices of industrial production of timber industry in 2025, according to him, are increasingly signaling that a negative trend that turns into a recession began to form in the RF LPC.
The expert notes the absence of fundamental growth factors – demand or prices in export markets, including in China. Strengthening the ruble in recent months leads to the profitability of sales to the negative zone, the analyst adds. In the domestic market, he said, there is no reason to believe that the demand for products of the LPC will begin to grow with the beginning of the season due to the departure of preferential mortgage lending programs, high banking rates, and tightening the requirements in the IZHS and the crisis in the construction industry.
