Metsä Wood suffers from declining demand

Metsä Wood’s Q2 sales was 103.6 million euros. That is 12.9% down from the previous year. The comparable operating profit was 1.3 million euros positive. The company reports average prices dropping in all product groups. Metsä expects demand for spruce plywood to remain strong, whereas in birch plywood demand is seen lower than normally and competition harder.

The declining sales also impact profitability. Metsä Wood’s Q2 comparable EBITDA was 6.4 million euros, which makes 6.2% of its turnover. In comparison, last week UPM Plywood reported their Q2 comparable EBITDA percentage being 17.1%. In terms of turnover, these two companies were identical during the second quarter of 2020. Metsä Wood’s sales amounted to 103.6 million euros and UPM Plywood’s to 104.0 million euros.

Despite the declined turnover figures, UPM Plywood succeeded to maintain high profitability. EBITDA was 18 million euros, which makes 17.1 % of turnover. The EBITDA percentage even improved from last year’s 15.6 %. The company also reported that fixed costs in Q2 were significantly lower compared to the same period last year.