Period-end comment from Setra for Q4 2023
Wood products company Setra has reported an operating loss of SEK -191 million (-69) for the fourth quarter of 2023. Net sales totalled SEK 1,273 million (1,395).
“The wood products market continued to be challenging in the fourth quarter. The main negative impact on earnings continues to be the combination of historically high raw material prices and low sales prices. For upcoming quarters, we have signed contracts with increased prices. Demand improved in the US and Asia, while underlying demand in Scandinavia and Europe remains weak,” says Marcus Westdahl, Setra’s CEO.
In the summer of 2021, Setra’s Board decided to invest in a new line for small diameter logs in Skinnskatteberg. Now, a little over two years later, the installation is ongoing and is expected to be operational in spring 2024. The investment, which includes additional measures, is an important step in Setra’s plant strategy.
Investments in further value adding steps for the raw material are progressing. The installation of the new CNC machine in Långshyttan began at the end of 2023. A second CNC machine will double Setra’s capacity in the cross-laminated timber factory. There is also an ongoing pellet investment in Långshyttan.
In January, Setra is relocating its head office to Råsundavägen 12 in Solna. The move within Solna to more modern and fitting premises maintains good proximity to various modes of communication for visitors.
Cash flow from operating activities in the fourth quarter amounted to SEK 127 million (-112).
| Key figures* | Oct–Dec (3 mos) | Jan–Dec (12 mos) | |||
| 2023 | 2022 | 2023 | 2022 | ||
| Net sales, SEKm | 1,273 | 1,395 | 5,262 | 6,364 | |
| Operating profit/loss, SEKm | -191 | -69 | -237 | 1,206 | |
| Profit/loss after tax, SEKm | -157 | -54 | -194 | 952 | |
| Operating margin, % | -15 | -4.9 | -4.5 | 19 | |
| Return on operating capital, %, RTM | -10 | 56 | |||
| Cash flow from operating activities, SEKm | 127 | -112 | 337 | 810 | |
| Dividend to company owners, SEK million | 476 | 629 | |||
* Setra does not publish a complete period-end report.
For further information, please contact:
Marcus Westdahl, President and CEO, phone +46 8 705 03 75, mobile +46 73 098 14 00
Johanna Gydingsgård, CFO, phone +46 8 705 03 03, mobile +46 72 453 85 41
At Setra, we believe in “Grönsamhet”. When a business is profitable for everyone, we call it Grönsamhet – Green profit. Setra is one of Sweden’s largest wood industry companies. We process raw material from responsibly managed forests into climate-friendly products such as glulam, planed products, components, CLT and sawn wood products. We also sell bioproducts such as bark, chips and sawdust to customers in the paper and pulp industry, and for energy production. Our customers are located all over the world. Find out more at setragroup.com