Trend in revenue decline of major timber industry players

Many forest-industry companies reported that they reduced revenues or reduced EBITDA margin in 2019. Mondi Group reduced revenue by 3% to € 7.268 billion. International Paper reduced revenue by 3.99% to $ 23.376 billion. Russian forest-industry companies also after excess profits in 2018, received lower financial performance. In 2019, the revenue of Ilim Group decreased by 20.3% to 124.07 billion rubles.

In 1Q 2020, the negative trend persists amid declining demand due to the spread of coronavirus and restrictions introduced in almost all countries of the world. For example, 1Q 2020, UPM sales were already down 15%, while Stora Enso was down 16.2%. The main “blow” for the timber industry is expected in 2-3Q 2020.