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Södra revives strong business in robust market

Published on :Monday, October 25, 2021

Södra attains a very strong business result in favourable market between January- September 2021. The positive results achieved owing to a favourable market for Södra’s core products, combined with high level of industrial production. The Södra Group’s net sales further increased in the first nine months of 2021 increased more than 25 percent compared with the year-earlier period to SEK 20,018 million (15,918). Operating profit totalled SEK 4,021 million (541) and return on capital employed was 26 percent (3). The equity ratio was 62 percent at the end of September.

“The favourable market conditions with high price levels have led to a strong result. There has been substantial interest in sawn timber and the demand for pulp remained positive. We estimate that the market outlook will remain positive in the short term, but can also see greater uncertainty in the slightly longer perspective,” said Lotta Lyrå, President and CEO.

“The market is at an exceptionally high level, partly as a reaction to the weaker market conditions in 2020. We should view these unique years – 2020 and 2021 – as a whole and not as two separate years. We can then separate temporary reactions from long-term trends and allow the latter to guide us in strengthening our efficiency, making sustainable decisions and keeping pace with the times.”

Several investments during the quarter

  • Södra made strategic shifts and invested in Cross-laminated timber (CLT) has been established in Denmark.
  • Digitisation efforts also intensified during the quarter
  • Södra will increase efficiency and in parallel improve profit by SEK 1 billion by 2024.

 “The digitisation of the value chain is key to the future family forestry and value generation. Today, consumer behaviour and markets are changing rapidly and this places high demands on flexibility and agility. By using digital tools throughout the value chain, Södra will strengthen its ability to generate value for forest estates,” said Lotta Lyrå, President and CEO.

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