Borregaard ASA
OSE:BRG
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Borregaard ASA
OSE:BRG
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Borregaard ASA
Borregaard ASA turns wood into industrial ingredients. It uses timber from sustainably managed forests and a biorefinery process to make products such as lignin-based binders and dispersants, specialty cellulose, and bio-based chemicals used in animal feed, batteries, concrete, construction, and other industrial applications. It also sells wood-based vanillin and related flavor ingredients for food and fragrance customers. Its main customers are manufacturers that need performance additives or raw materials, not consumers. Borregaard usually sells to producers in industries like construction, agriculture, food, personal care, and specialty chemicals. The company makes money by selling these wood-derived ingredients under long-term supply relationships and by charging for products that are harder to replace than ordinary commodity chemicals. What makes Borregaard different is its role as a wood biorefinery, not a traditional forest-products company. Instead of making paper or lumber, it extracts multiple high-value products from the same wood input and sells them into industrial markets where customers want technical performance, consistency, and lower fossil content. That gives the business a mix of commodity-like raw material exposure and specialty product economics.
Borregaard ASA turns wood into industrial ingredients. It uses timber from sustainably managed forests and a biorefinery process to make products such as lignin-based binders and dispersants, specialty cellulose, and bio-based chemicals used in animal feed, batteries, concrete, construction, and other industrial applications. It also sells wood-based vanillin and related flavor ingredients for food and fragrance customers.
Its main customers are manufacturers that need performance additives or raw materials, not consumers. Borregaard usually sells to producers in industries like construction, agriculture, food, personal care, and specialty chemicals. The company makes money by selling these wood-derived ingredients under long-term supply relationships and by charging for products that are harder to replace than ordinary commodity chemicals.
What makes Borregaard different is its role as a wood biorefinery, not a traditional forest-products company. Instead of making paper or lumber, it extracts multiple high-value products from the same wood input and sells them into industrial markets where customers want technical performance, consistency, and lower fossil content. That gives the business a mix of commodity-like raw material exposure and specialty product economics.
EBITDA: First-quarter EBITDA was NOK 428 million, down from NOK 511 million a year ago, as weaker BioSolutions and BioMaterials results offset a stronger Fine Chemicals quarter.
Demand: Management said lower BioSolutions volumes in agriculture and batteries looked temporary, tied to geopolitical uncertainty and customer destocking rather than a structural demand shift.
Outlook: Full-year volume guidance was reaffirmed for BioSolutions at about 340,000 tonnes and for BioMaterials at 155,000 to 160,000 tonnes, but Q2 is expected to have a less favorable mix in BioSolutions.
Costs: Borregaard expects higher energy, logistics and chemical costs, partly offset by lower wood costs, and has started targeted measures to contain expenses and consider surcharges.
Cash flow: Operating cash flow was only NOK 77 million, hurt by higher working capital and tax payments, while net debt rose by NOK 35 million but the balance sheet remained strong.
