Period-end comment from Setra Q4 2020

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Wood products company Setra is reporting operating profit of SEK 117 million (8) for 2020. Net sales totalled SEK 4,131 million (4,264). The company generated operating profit of SEK 61 million (-87) for the fourth quarter, with net sales of SEK 1,088 million (1,002).

Setra is reporting an earnings improvement of SEK 109 million for 2020 compared with the previous year. Significantly lower average selling prices compared with 2019 have been offset by lower raw material prices, positive exchange rate effects, lower fixed costs and higher delivery volumes. At the start of the coronavirus crisis a decision was made to reduce July production, while sawmill production in general continued as normal and without any furloughing of employees. Sickness absence related to Covid-19 has increased, but has not noticeably impacted operations. Market conditions saw a considerable improvement in the second half of the year.

“Demand in the autumn has been healthy in our markets and these conditions are set to persist into the start of 2021. The Covid-19 situation around the world is serious at the moment, but we are hoping to see a change for the better as the vaccine is rolled out,” commented Katarina Levin, Setra’s CEO.

The beginning of November saw the first significant shipment of planed wood products from Setra’s sawmill in Hasselfors to Setra’s distribution centres in the UK, following completion of a strategic investment in the form of a new trim saw and planing machine.

The cross-laminated timber factory in Långshyttan performed well and will be completing its first major delivery in the next few days, with positive feedback from the customer Veidekke, which is building the Cederhusen apartment block in Stockholm.

At the start of the fourth quarter, Setra entered into an agreement regarding the sale of Rolfs Såg in Kalix to Stockhult Holding. Stockhult is the owner of a sawmill in Glommersträsk and plans to resume operations at the location. Transfer of ownership took place on 11 December 2020.

Cash flow from operating activities for the period January–December amounted to SEK 383 million (179). The increase is largely attributable to reduced working capital, combined with operating profit. Net financial debt amounted to SEK 301 million (403) at the end of the period, which corresponds to a net debt/equity ratio of 19 percent (28).

Key figures* Oct.–Dec. (3 mos) Jan.–Dec. (12 mos)
2020 2019 2020 2019
Net sales, SEKm 1,088 1,002 4,131 4,264
Operating profit/loss, excl. non-recurring items, SEKm** 58 -89 107 24
Operating profit/loss, SEKm 61 -87 117 8
Profit/loss after tax, SEKm 42 -82 71 -10
Operating margin, excl. non-recurring items, % 5.3 -8.9 2.6 0.6
Return on operating capital, %, RTM 6.9 0.5
Cash flow from operating activities, SEKm -9 54 383 179

*Setra does not publish a complete year-end report.
**Non-recurring items relate to discontinued operations.

For further information, please contact:
Katarina Levin, President and CEO, phone +46 8 705 03 10, mobile +46 70 594 92 54
Johanna Gydingsgård, CFO, phone +46 8 705 03 03, mobile +46 72 453 85 41

At Setra, we believe in “Grönsamhet”. When a business profits everyone, we call that “Grönsamhet”. 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