Södra posted a stable result for the Q1 2023. The result reflects the changed market conditions for Södra’s core products, while global turmoil is creating an uncertain outlook.
In the Q1 2023, net sales for the Södra Group amounted to SEK 8,002 million ($775 million), down 2% year-on-year. Operating profit totalled SEK 1,085 million ($105 million), representing an operating margin of 14%. Return on capital employed was 19% and the equity ratio increased to 68%.
The Q1 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 ($41 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.
Södra is the largest forest-owner association in Sweden, with 51,000 family forest owners as members.
