In the second quarter, the plywood business division of UPM-Kymmene sold a total plywood volume of 198,000 m³. The 14% increase vis à vis the preceding year means that a double-digit growth rate was achieved, as had been the case in the first quarter (+10% to 191,000 m³). In the first three months of the year, plywood deliveries had increased for the first time in around three years (Q1 2018: +4% to 209,000 m³); previously, declines in the mid-single-digit percentage range were recorded in most cases. The 200,000 m³ mark, which was only just missed in the current period, had last been exceeded in the second quarter of 2018 (206,000 m³).
As in previous quarters, during the current period UPM-Kymmene benefited from ongoing strong demand for softwood plywood from the construction sector. Birch plywood sales also developed along positive lines due to good trade demand as well as vehicle construction and building-related areas. Taking into account the price increases implemented in the second quarter, turnover of the business division rose by 14% to €119m, of which approximately €114m was generated by external customers (+16%). According to the company, even the higher prices did not make it possible to completely pass on the cost increases since the second of 2020 to the customers. The comparable EBITDA thus rose by 6% to €19m. The comparable EBIT developed along somewhat better lines increasing by 9% to €12m.
The biorefining business division, in which activities concerning pulp, lumber and biofuel are consolidated, again performed along better lines. According to UPM-Kymmene, this was mainly due to the significant increase in pulp and lumber prices in the second quarter. According to the company, on a euro basis pulp prices increased by 29% compared to the respective period last year, whilst pulp sales decreased by 6% to 884,000 t. In the second quarter, UPM-Kymmene furthermore experienced strong demand for lumber as well as biodiesel and naphtha; specific sales volumes and prices for these products were not published. Turnover of the business division increased by 27% to €714m in the second quarter. The comparable EBITDA more than doubled to €239m, whilst operating profit rose at an even more significant rate of 171% to €190m.
