Wood products company Setra has reported an operating loss of SEK -64 million ($6.2 million) for the Q1 2023. Net sales totalled SEK 1,414 million ($137 million), compared to SEK 1,834 million ($177 million).
“The strong deliveries continued in the Q1, but unfortunately with negative margins for Setra. This is mainly down to low prices and high raw material costs combined with higher electricity costs,” explains Setra’s CEO Katarina Levin.
Prices picked up over the quarter, but not enough to compensate for the rising costs of raw materials, electricity and fuel. Activity in most markets was slightly better than expected, with the exception of the Swedish market, which was characterised by a marked decline in new housing construction. However, the construction of commercial and public buildings has shown better activity, relatively speaking.
Cash flow from operating activities in the Q1 amounted to SEK -82 million ($8 million). Net cash totalled SEK 1,319 million ($127 million) at the end of the period.
Setra is one of Sweden’s largest wood industry companies.
