The largest sawmill in Denmark has posted a financial loss for the second consecutive year, reflecting broader challenges in the wood industry. Weakened demand, high raw timber prices, and stagnating market prices have led to another disappointing year.
Norlund A/S, based in Nørager, reported a pre-tax loss of DKK 11.7 million for 2024. This follows a loss of DKK 7.2 million the previous year, a stark contrast to the DKK 54 million in profits it accumulated from 2020 to 2022. The company's gross profit dropped to DKK 21.3 million in 2024, down from DKK 44.8 million in 2022. Equity has also declined sharply from DKK 49.3 million in 2022 to just DKK 22.1 million in 2024.
CEO Jørgen Skriver described 2024 as "a challenging year" and cited ongoing struggles across the Northern European sawmill sector. 'Construction has come to a standstill, and raw timber prices have increased significantly. At the same time, market prices have not kept up. This has resulted in a pressured margin,' he explained.
He also noted that while the Covid-19 pandemic saw booming demand, driven by a surge in home improvement projects, prices for finished products such as rafters and laths began falling sharply from late 2021 onwards.
Although selling prices finally began rising in early 2024, they have not yet offset the sustained high cost of raw materials. Skriver remains cautiously optimistic about 2025, anticipating a gradual market recovery if timber prices stabilise.
Norlund A/S produces timber and structural timber for the Danish and wider European construction markets and employs 39 people.
Source: www.wood-supply.dk