Nordic Wood Industries delivers a solid year end result despite challenges in the market
Nordic Wood Industries has ended 2022 with a solid account despite an uncertain construction market. A strong product portfolio, strategic acquisitions and an ever-increasing demand for timber construction have contributed to a satisfactory result across the group’s companies, says Group CEO Thomas Raunsbæk.
An increasing focus on wood construction and a strong product mix has been just the right combination in an otherwise sluggish market. This is revealed by the annual accounts for the wood-based group Nordic Wood Industries, which consists of the companies Palsgaard Spær, Nviro, Lilleheden, Roust Element, Roust Spær, Bisco Binder and Skandach Holzindustrie. The group presents yet another solid annual report, which is, however, characterized by the uncertain rates in the construction industry.
Nordic Wood Industries has raised the top line by a good ten percent compared to the previous year and ends the year with a turnover of DKK 914 million. The result after tax amounts to DKK 59.9 million and thus falls compared to last year’s accounts, but according to Thomas Raunsbæk, who is Group CEO of Nordic Wood Industries, the accounts are satisfactory against the background of the uncertain market situation.
“The financial year has been characterized by many uncertainties due to the war in Ukraine, the energy crisis, rising interest rates and inflation – factors that have all put a damper on the construction industry. However, we have managed to prepare and adapt to the difficult situation, so that we can run our companies in the best possible way in a market with less activity. Therefore, it is extremely satisfying that we manage to stay on course and create a great result across our companies. This is mainly because our employees have put in a great effort, and the cooperation between the companies has also been strengthened, and we therefore see a great many positive synergy effects, which have certainly contributed to the positive accounts“, explains the Group CEO and continues:
In addition, we find that the demand for wood-based building materials only increases in these years, when the market undergoes a decisive transition towards a resource-smart construction industry. Here, among other things, we are selected for many low-emission buildings, because wood is a renewable resource and has the ability to embed CO2. In addition, we keep track of the EPDs, work purposefully with climate accounting and use certified wood products in our production. We must continue this course in the coming years, when it must be made even easier for the construction industry to choose wood-based products – because the use of more wood is an absolutely necessary development if we are to take care of the climate and ensure a sustainable development of construction.
According to Thomas Raunsbæk, the group’s expectations for 2023 are significantly lower than the accounts of recent years, which is due, among other things, to the fact that the construction industry in general is affected by a decline as a result of the uncertain world situation, and this will be felt in the activity as well as the sales prices and thus the result in 2023.
Family increase in the group
At Nordic Wood Industries, however, there is no doubt as to how the group’s momentum in the market must be maintained, and Thomas Raunsbæk already has a clear strategy for the coming years.
“We must continue to develop our skills and ensure that our portfolio of products keeps up with market demand, such as even more prefabrication in wood. This must of course be done through internal development, but in particular also through the acquisition of wood-based companies, when we find the right opportunities that strengthen one of our current companies or compliment our portfolio. Therefore, we have a clear ambition to gather more and more competences in the group, so that we can ensure continued safe development and growth of the timber construction industry,” says Thomas Raunsbæk.
Last year also offered a new member to the Nordic Wood Industries family, when Ugilt Spær became part of Palsgaard Spær. As a result, the activities in North Jutland were expanded with 30 employees and new production premises.
“When we acquired Ugilt Spær, it was obvious to let the company form part of Palsgaard Spær. This provides logistical and production efficiency across the companies, which ultimately allows us to deliver faster to customers without compromising on quality. The acquisition and the merger with the remaining organization have gone very well, and we are happy to have gained both another good location and, not least, more talented employees,” says Thomas Raunsbæk.
Acquisition of the module manufacturer is still a reality
In addition to Ugilt Spær, Nordic Wood Industries also entered into an option agreement with MT Højgaard Holding last year to take over the module manufacturer Scandi Byg, which is based in Løgstør. And according to Thomas Raunsbæk, the group still intends to realize an acquisition:
“We expect to continue to be able to welcome Scandi Byg during 2023. Scandi Byg is built around the same DNA as Nordic Wood Industries and has a strong focus on resource savings throughout the value chain. At the same time, the company has worked for several decades on an exciting and value-creating solution within climate-friendly construction. Scandi Byg therefore fits in very well with the family, and we are delighted that the company has initiated several positive initiatives which strengthen the company and can get it back on track,” he concludes.