# SCA > Clarifo company profile — qualitative business description generated from > the company's filings. Financial statements, charts and ratios are > available on Clarifo (https://www.clarifo.com/en/companies/scaab). ## Overview SCA is a Swedish forest and basic materials group centered on owned forest assets in northern Sweden. The company manages forests, harvests wood raw material, and converts it into renewable products such as pulp, solid wood products, packaging-related materials, and forest seedlings. ## Products & services • Managed forest assets and timber harvesting • Pulp and other fiber-based materials • Solid wood products and sawn timber • Forest seedlings for own use and third parties • Renewable by-products and bioenergy-related outputs - **Forest** (26%) — Ownership and management of forest land, timber harvesting, and standing timber value creation. - **Wood** (24%) — Sawn timber and solid wood products sold to industrial and construction customers. - **Pulp** (16%) — Pulp and fiber-based raw materials used in paper, tissue, and packaging applications. - **Publication paper** (14%) — Graphic paper products historically sold to print and publishing customers. - **Seedlings and other operations** (20%) — Forest seedlings, logistics, by-products, energy, and other supporting activities. - Managed forest assets and timber harvesting - Pulp and other fiber-based materials - Solid wood products and sawn timber - Forest seedlings for own use and third parties - Renewable by-products and bioenergy-related outputs ## Customers SCA sells to industrial buyers that use wood fiber, pulp, and sawn timber as input materials in manufacturing and construction. It also serves forestry-related customers through seedling sales and related services, while some products are sold through framework agreements and call-off orders. The customer base is therefore predominantly business-to-business and tied to commodity, industrial, and forest-product end markets. - **Industrial fiber customers** (primary) — Buy pulp and fiber-based materials for packaging, tissue, and other industrial uses. - **Wood products customers** (primary) — Buy sawn timber and solid wood products for construction and manufacturing. - **Paper customers** (secondary) — Buy publication paper for print and related uses where applicable. - **Forest owners and nurseries** (secondary) — Buy seedlings and forestry inputs for replanting and forest regeneration. - Packaging and fiber-processing customers buying pulp and raw material - Construction and wood-processing customers buying sawn timber - Publishing and graphics customers for paper products - Forest owners and forestry operators buying seedlings - Industrial buyers that place call-off orders under framework agreements ## Geography SCA’s core business is concentrated in Sweden, especially northern Sweden where its forest assets are located and where much of the industrial base is anchored. The company also sells into broader European markets, with reported historical revenue exposure across the UK, Germany, France and other export markets. Geography matters because forest ownership, transport distances, and access to ports and industrial customers shape both supply and delivery economics. - **Sweden** (14%) — 2019 net sales by geography disclosed in the annual report excerpt - **United Kingdom** (18%) — 2019 net sales by geography disclosed in the annual report excerpt - **Germany** (14%) — 2019 net sales by geography disclosed in the annual report excerpt - **France** (0%) — The excerpt is truncated after France; no percentage visible - **Other Europe and export markets** (54%) — Residual share inferred from the visible geography table excerpt - Forest assets and major operations are concentrated in northern Sweden - Sweden is the core operating base and resource base - Exports reach key European markets such as the UK, Germany, and France - Transport and logistics are important because products are bulk commodities - Geography links raw material supply, mills, and customer delivery routes ## Strategy SCA’s strategy centers on value creation from owned forest resources, disciplined industrial processing, and renewable products that substitute for fossil-based materials. It also emphasizes value-based culture, operational control across the value chain, and sustainability themes such as climate benefit, supplier standards, and responsible forest management. - **Value-based culture** (long-term) — SCA ties execution and stakeholder trust to common values, ethics, and supply-chain standards. - **Profitable growth** (medium-term) — The business depends on improving value from forest resources and industrial products over time. - **Fossil-free world** (long-term) — Renewable forest products are positioned as substitutes for fossil-based materials and climate-intensive alternatives. - Grow value from owned forests rather than relying only on external fiber - Increase output value per tree through upgrading and product mix - Use renewable products to displace fossil-based alternatives - Maintain strong control over logistics from forest to customer - Embed supplier standards, compliance, and Code of Conduct principles - Support climate goals through forest growth and lower emissions ## Risks SCA is exposed to commodity-like pricing, demand swings, and raw material cost pressure across forest products and pulp-related markets. It also faces forestry-, climate-, and policy-related risks because its assets and supply chain depend on long-lived forest resources, regulation, and transport infrastructure. - **Demand and market price for SCA’s products** [high] — Forest products are exposed to cyclical demand and commodity pricing. - **Raw material prices** [high] — Input costs can move independently of selling prices and pressure economics. - **Political decisions on forestry and climate charges** [high] — Forest ownership and industrial operations are directly affected by policy changes. - **Climate change** [high] — Long-lived forest assets and industrial operations are exposed to physical and transition risks. - **Business ethics and reputational risk** [medium] — A value-based brand depends on compliance, supplier standards, and stakeholder trust. - Demand and market price volatility for forest products - Raw material price risk affecting margins and supply economics - Political decisions on forestry, climate charges, and regulation - Climate change impacts on forests, logistics, and production assets - Business ethics, supplier, and reputational risks across the value chain ## Accounting Revenue is recognized under IFRS 15 at a point in time when control transfers under the applicable Incoterms, and many sales are framework agreements that become binding on call-off orders. Variable consideration such as discounts and delivery bonuses can affect reported revenue, while derivatives, provisions, and lease accounting create additional judgment around valuation and timing. Because SCA has substantial forest assets and long-lived industrial operations, estimates around provisions, fair values, and impairment can materially affect reported results. - **IFRS 15 revenue recognition** — Affects timing of net sales and quarterly comparability - **Variable consideration** — Affects revenue netting and reported margins - **Provisions** — Can move operating expenses and liabilities - **Derivatives and hedge accounting** — Creates volatility in financial income and equity reserves - **IFRS 16 leases** — Affects leverage, depreciation, and interest expense - IFRS 15 revenue timing depends on call-off orders and delivery terms - Variable consideration can reduce reported sales through discounts and bonuses - Incoterms affect when control transfers and revenue is booked - Provisions and other estimates affect liabilities and operating results - Derivatives and hedge accounting affect fair value and OCI volatility --- *Last updated: 2026-09-28T10:46:40.221812+00:00*