Segezha Group announces 34% increase in earnings for 1H/2016

The Segezha Group reported RUB 21.4 billion (US$329 million) in earnings for the period 1H/2016, a 34% increase compared to the same period last year.

OIBDA reached RUB 4.6 billion (US$70.7 million), a year-on-year increase of 28%; OIBDA margin was 21.6%. Net income went up 53.1% to RUB 1.6 billion (US$24.6 million) compared to the same period last year.

Sergey Pomelov, president and chairman of the Management Board of Segezha Group, said, “Despite the challenging market situation, Segezha Group demonstrated a strong revenue growth in 1H/2016 thanks to increased sales of its key products. We significantly expanded our sack paper capacity by launching a new sack factory in the Rostov region and a production line in Segezha, and almost doubled our sawn timber and fibreboard production capacity by acquiring Lesosibirsk Woodworking Plant No.1, Russia’s biggest vertically integrated wood processing enterprise, in 1Q 2016.

“Measures taken to cut production costs, additional advantages created by fluctuating exchange rates of currencies for which we export our goods and the focus on sales of high-margin products helped us to keep the OIBDA margin high.”

Segezha Group is one of Russia’s largest vertically integrated forest holdings with a full cycle of logging and advanced wood processing. Segezha Group comprises forest, wood processing and pulp and paper assets in Russia and Europe.