Södra triumphs over the new market conditions

Södra stands stronger against the increasing competition of the woodworking and pulp industry. It successfully posted a stable result for the first quarter of 2024. The overall competitiveness makes the company stronger while it continues to deliver high value to family forestry.

In the first quarter of 2024, net sales for the Södra Group amounted to SEK 7,613 million (8,002), down 5 percent year-on-year. Operating profit totalled SEK 568 million (1,085), representing an operating margin of 7 percent (14). Underlying profitability increased significantly quarter-on-quarter. Return on capital employed was 9 percent (19) and the equity ratio declined to 63 percent.

Given the market conditions and macro-environment, the first quarter result is in line with expectations. The result reflects the weak trend in construction activity and decreased supply in the raw material market.

Södra’s mills produced high volumes with stable quality during the…