Bergs Timber is a Swedish company, which owns and develops companies that produce and sell processed timber products. Bergs Timber operates through its main segments Wood Protection, Sawn Wood and Joinery. It produces products such as sawn wood, treated wood, custom-made windows/ doors, houses, and outdoor furniture/gardening products. The company has operations in Sweden, Estonia, Latvia, and the UK, and its products are sold to ~20 countries.
Historically, Bergs Timber has been a typical sawmill group with a high degree of commoditised wood products. In 2020, the company divested its Swedish sawmills and is now a more downstream-focused company with less cyclicality in its earnings. Bergs Timber’s strategy is to focus on growth within its Joinery and Wood Protection segments (organically & through M&As). The end-markets for its products are growing structurally (building with wood is more environmentally friendly), and there could be potential for growth, both organically and inorganically.
Risks include higher raw material costs, lower product prices and changes in the general economic cycle.
