In the 2Q 2020, Södra’s consolidated net sales declined 13% to SEK 5,416 million and operating profit totalled SEK 221 million ($24.8 million). The lower profitability was due to lower price levels for paper pulp and sawn timber compared with the year-earlier period. The operating margin was 4%.
During the first six months, sales declined 12% to SEK 10,993 million and operating profit totalled SEK 449 million ($50.4 million). The operating margin was 4%. Return on capital employed was 4% and the equity ratio was 57%.
“The global outbreak of COVID-19 has led to a serious global crisis. The extent of the economic impact is uncertain, since both production and demand have declined globally. It is with great respect and gratitude that I see how we are continuing to work together to slow the spread of the virus, while simultaneously managing our day-to-day operations,” said Peter Karlsson, Interim President and CEO. “We are also looking ahead and the Board has decided to make additional investments as part of the plan to increase the annual production capacity of our pulp mill at Värö to 850,000 tonnes so that Södra can continue to grow profitability as we move forward.”
“Given the current market conditions, Södra posted a stable result in line with expectations for the first half of the year,” Karlsson added.
