Record conversion for Moelven – Byggmesteren
Moelven had sales of NOK 3945 million in the first quarter of 2022, an increase of NOK 763 million compared to the same period in 2021. Operating results from the first three months of the year are NOK 732 million, and an increase from last year’s NOK 290 million.
Read also: Historically high turnover for Moelven
The war creates an increased shortage of wood
– Demand and the price picture both at home and abroad are defined by the international market for wood products. Demand was very strong internationally through the winter, and with the war in Ukraine, there has been further imbalance in it. Loss of large amounts of Russian timber due to the sanctions means that the market must now look for these various other places, and this affects the balance in the market, says CEO Morten Kristiansen of Moelven Industrier ASA.
The Moelven Group strongly dissociates itself from the Russian invasion of Ukraine, and has stopped all trade with Russia and Belarus. Moelven has only had some products and deliveries originating from these countries.
Moelven is well equipped to handle the great demand, and has good timber on both the Norwegian and Swedish side for the upcoming production.
Abnormal years
The first months of the year are the strongest quarter Moelven has been delivered for the first time. The CEO is still hesitant considering the rest of the year.
– We have gone straight from pandemic to a turbulent world situation with war Europe, and therefore it is difficult to define a normal situation. This makes it difficult to say anything clear about the time ahead, says Kristiansen.
At the same time as international demand remains strong, there are many indications that the high price levels for a whole range of construction products and other input factors can have a negative effect on parts of both the consumer and professional markets in Scandinavia.
– We are in the middle of a cost carousel, the consequences of which are difficult to see. At the same time as Moelven has strong earnings, the industry is upgrading and investing internationally. This is also a race Moelven participates in to be able to improve competitiveness in the future, says Kristiansen.
Sales and establishment in Denmark
In the first quarter, Moelven Danmark A / S was sold to Frøslev Træ Holding A / S. Moelven Danmark A / S was a total supplier of wood-based products to the Danish construction industry, and had 20 employees. Moelven still offers the sale of slabs, scaffolding and planers built through the newly established company Moelven Danmark Sales A / S.