Setra reports growth in profit for first half of year
Wood products company Setra has reported an operating profit of SEK 233 million (90) for the first half of 2018. Net sales totalled SEK 2,359 million (2,082). Operating profit for the second quarter amounted to SEK 141 million (57), with net sales of SEK 1,229 million (1,075).
“We’re reporting an operating profit of SEK 233 million for the first half of 2018, which is an improvement of SEK 143 million on the previous year. The continued positive development of the wood products market has enabled us to increase sales prices as well as sales and production volumes. We envisage a continued strong market for wood products and good demand among our customers moving forward,” said Hannele Arvonen, President and CEO at Setra.
Cash flow from operating activities in the first half of the year was SEK 111 million (96). The Group’s financial position is strong. The Group’s financial net debt amounted to SEK 41 million (126) at the end of the period, which corresponds to a net debt/equity ratio of 3% (9).
The Setra Board has decided to invest in the manufacture of components and CLT in Långshyttan. These investments enable the creation of a new wood industry centre in Långshyttan, in addition to the further development of existing glulam production. Through investments, Setra is taking a step towards boosting processing capacity and reinforcing its long-term competitive edge in the wood industry.
Setra and Preem have entered into an agreement on the production of renewable biofuel. A production facility is being planned at Setra’s Kastet Sawmill in Gävle. The facility, which will convert sawdust into pyrolysis oil, is estimated to provide around 25,000 tonnes of oil each year, which will be refined into biofuel via Preem’s refinery in Lysekil.
| Key figures | Apr–Jun (3 months) | Jan–Jun (6 months) | ||||||
| 2018 | 2017 | 2018 | 2017 | |||||
| Net sales, SEKm | 1,229 | 1,075 | 2,359 | 2,082 | ||||
| Operating profit, SEKm | 141 | 57 | 233 | 90 | ||||
| Profit after tax, SEKm | 111 | 43 | 181 | 66 | ||||
| Operating margin, % | 11.5 | 5.3 | 9.9 | 4.3 | ||||
| Return on operating capital, %, 12 months | 21.7 | 11.6 | ||||||
| Cash flow from operating activities, SEKm | 81 | 124 | 111 | 96 | ||||
Setra does not publish a complete quarterly report.
For further information, please contact:
Hannele Arvonen, President and CEO, phone +46 (0)8 705 03 10, mobile +46 (0)70 618 19 17
Setra is one of Sweden’s largest wood products companies. We process raw material from responsibly managed forests and offer climate-friendly products and solutions for building and living in a global market. The Group has approximately 800 employees and annual sales of around SEK 4 billion. Exports to Europe, North Africa, the Middle East and Asia account for about 65% of sales. Read more at www.setragroup.com
