Strong first quarter for Södra

Södra’s operating profit totalled SEK 451 million (249) for the first quarter. The operating margin improved to 9 percent (5) and return on capital employed to 11 percent (7).

“Södra’s first quarter was strong with increased net sales, higher earnings and an improved operating margin. Robust demand contributed to the favourable volume and price trend, and the currency trend was also positive. Based on its Group strategy, Södra will continue to strengthen and focus on increased digitisation, innovation and sustainability,” said Lars Idermark, President and CEO.

“One important reason for the positive result was the improvement for the sawmill operations, where the ongoing restructuring process – with a customer and market focus, and the development of new products and services – is progressing according to plan,” said Lars Idermark.

In the Södra Wood business area, earnings rose SEK 96 million to SEK 3 million (loss: 93).

The Södra Cell business area was positively impacted by higher volumes due to expanded capacity at the Värö pulp mill. Earnings were also affected by favourable price levels and a positive trend for the business area’s currencies. Operating profit totalled SEK 457 million (371).

The Södra Skog business area reported operating profit of SEK 16 million (18) for the first quarter.

“Due to the positive trend we have seen since autumn 2016, the second quarter should also be strong. At the same time, our efficiency measures will continue with the aim of further improving profitability. However, there are still a number of geopolitical concerns and our business environment is rapidly changing,” said Lars Idermark.

January-March 2017 in brief: 2017 2016 2016
  1 Jan-31 March 1 Jan-31 March 1 Jan-31 Dec
Net sales, SEK million 5,098 4,545 18,482
Operating profit before depreciation, amortisation and impairment (EBITDA), SEK million 761 484 2,101
Operating profit, SEK million 451 249 1,005
Profit before income tax, SEK million 430 233 939
Operating margin, % 9 5 5
Return on capital employed, % 11 7 7


Read the complete report here

See the interview with Lars Idermark

For questions, please contact:
Anna Belfrage, CFO Södra,
Tel: +46 (0)470-890 40

Annica Gerentz, Director of Communications, Södra,
Tel: +46 (0)470-894 81

Södra's Pressroom,
Tel: +46 (0)470-890 90

Email: press@sodra.com

Södra was founded in 1938 and is the largest forest-owner association in Sweden, with a membership of more than 50,000 forest owners. We engage in modern and responsible forestry, and operate state-of-the-art mills in which we process our raw material. Through value-generating relationships and a long-term approach, Södra is leading the way for the next generation of forestry. 

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Södra was founded in 1938 and is the largest forest-owner association in Sweden, with a membership of more than 50,000 forest owners. Södra is also an international forest industry Group, with 3,600 employees. A balance between production efficiency and nature conservation guides everything that we do. We produce timber, interior wood products, paper and textile pulp, and green energy. We use every part of the tree, and are always looking to develop new products from this fantastic, renewable raw material. Södra is one of the leading European suppliers of pulp for the global market, and has one of the largest sawmill operations in Sweden. Through value-generating relationships and a long-term approach, Södra is leading the way for the next generation of forestry.

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