In the Q2 2024, net sales for the Södra Group amounted to SEK 7,527 million, up 3% year-on-year. Operating profit totalled SEK 398 million ($36.7 million), representing an operating margin of 5%. Return on capital employed was 8% and the equity ratio was 60%.
“In the Q2, Södra delivered a stable result that was just ahead of expectations. The result was positively impacted above all by high pulp prices and good cost control, while it was burdened by higher raw material prices and costs of approximately SEK 275 million ($25.4 million) for scheduled maintenance shutdowns at Värö and Mörrum,” said Lotta Lyrå, President of Södra.
For sawn timber, the weak economy has continued to affect the market, though prices have been maintained due to lower supply. The result for the paper pulp business was impacted by scheduled maintenance shutdowns, although demand remains positive in relation to supply. World-class efficiency – Södra's way of working with continuous improvements – generated improvements during the quarter and efficiencies with a recurring annual effect of SEK 184 million ($17 million).
Business areas’ results for the Q2 2024
In the Södra Skog business area, operating profit totalled SEK 46 million ($4.2 million) for the period.
- The earnings trend was mainly attributable to a continued increase in prices and higher delivery volumes.
In the Södra Wood business area, operating profit totalled SEK 128 million ($11.8 million) for the period.
- The earnings trend was primarily due to higher delivery prices.
In the Södra Cell business area, operating profit totalled SEK 380 million ($35 million) for the period.
- The earnings trend was mainly due to higher pulp prices and price reductions for energy products.
- The result for energy and chemical products was on a par with the year-on-year period. Higher prices for solid fuel products made a positive contribution, while lower prices for electricity and liquid bioproducts had a negative impact.
In the Södra Innovation business area, the operating loss totalled SEK 54 million ($5 million) for the period.
- The year-on-year earnings trend was mainly attributable to depreciation and lower profit from shares in associates.
Södra is the largest forest-owner association in Sweden, with more than 50,000 family forest owners as members.
