Most of the growth is due to increased volumes, which naturally raises material and service costs in the manufacturing industry. The disproportionate increase in material and service costs was likely driven especially by the revenue’s emphasis on the lower-margin Sawmilling industry (incl. the acquisition of Iisveden Metsä) and the rise in log prices. Koskisen presumably used inventories purchased at higher than current prices during the beginning of the year.
Koskisen’s Q3 figures were undeniably weak compared to the reference period and expectations, even if the impact of that write-down were to be excluded. The comment is here and the webcast starts soon here.