Financial performance of the Russian timber industry began to improve but is still far from the 2021 peaks

Q1 2022 saw the historic high of timber enterprises’ quarterly revenue (740 billion rubles). The financial performance began to deteriorate drastically starting from Q2 2022 as European markets became unavailable. According to an estimate by WhatWood, in 2022, the revenue of the Russian timber industry was 2.6 trillion rubles (-10% YoY), while the net profit dropped to 307 billion rubles (-35% YoY).  By Q3 2023, almost no timber industry sectors were in the red. In 2023, the combined revenue of the Russian timber industry may reach 2.5 trillion rubles.

Revenue and net profit

Over three consecutive quarters (Q3 – Q4 2022 and Q1 2023), the revenue of timber enterprises remained at the level of 545–549 billion rubles. In Q2 2023, their revenue soared to 589 billion rubles. In H1 2023, the total revenue declined by 17% compared to H1 2022, down to 1.1 trillion rubles. Over 9 months of 2023, it dropped by 7% YoY, down to 1.8 trillion rubles. In Q3 2023, the revenue grew considerably, up to 642 billion rubles, i.e., by +17% YoY.

The combined net profit across all timber industry sectors plummeted by 39% YoY over 9 months of 2023, down to 171 billion rubles. Performance of the sawmilling industry continued to improve significantly in Q1 – Q3 2023.

Read more in Russian Timber Journal 11-2023.