Thursday, April 27, 2023
|
Listen to this news
|
Södra posted a stable result for the first quarter of 2023. The result reflects the changed market conditions for Södra’s core products, while global turmoil is creating an uncertain outlook.
In the first quarter of 2023, net sales for the Södra Group amounted to SEK 8,002 million (8,165), down 2 percent year-on-year. Operating profit totalled SEK 1,085 million (1,974), representing an operating margin of 14 percent (24). Return on capital employed was 19 percent (36) and the equity ratio increased to 68 percent.
The first quarter result is an effect of expected and changed market conditions for Södra’s core products. The performance reflects the market downturn during the spring, which led to weaker prices following a period of exceptional market conditions. Södra’s mills continued to produce high volumes with stable quality during the quarter, which maintained high sales. In addition, the Group’s focus on world-class efficiency has so far created efficiency gains corresponding to SEK 425 million on a full-year basis.
“In view of the many challenges faced by the market at present, Södra delivered a stable result. After a period with exceptional market conditions, we are now entering a new phase with more uncertainty ahead. Due to our previous results, we are well-equipped to manage the challenges ahead of us and to continue working with what we can influence to strengthen our operations, while refining and renewing family forestry,” said Södra’s President Lotta Lyrå.
A key part of Södra’s Group strategy is a future-proofed industrial structure that creates a leading offering for customers and consumers. On 15 March, Södra’s new CLT facility was inaugurated on the west coast of Sweden. A new product area was also established during the quarter. The energy and chemicals business plays a key role in Södra’s strategy and will continue to grow. As a result, the Södra Bioproducts product area has now been formed to bring sales and marketing together, and thereby further strengthen the customer offering and profitability.
Tags: ligna, Södra, Solid Wood, timber manufacturing, wood, wood and panel, wood working and processing, woodworking and manufacturing, woodworking UK
Comments: