In 2019, Södra's consolidated net sales amounted to SEK 23,183 million ($2.4 billion), down 4%. Operating profit totalled SEK 2,582 million ($263 million), representing an operating margin of 11%. Return on capital employed was 12% and the equity ratio was 59%.

Schnittholz

Södra's FY 2019 net sales down 4%

In 2019, Södra's consolidated net sales amounted to SEK 23,183 million ($2.4 billion), down 4%. Operating profit totalled SEK 2,582 million ($263 million), representing an operating margin of 11%. Return on capital employed was 12% and the equity ratio was 59%.

For the 4Q 2019, net sales amounted to SEK 5,274 million ($538 million) and operating profit totalled SEK 62 million ($6.3 million). The Board proposes that the Annual General Meeting on 3 June approve a profit distribution of SEK 1,068 million ($109 million) to members, corresponding to 43% of profit before tax.

“The global economy slowed after several years of strong demand and positive price growth. In view of prevailing market conditions, Södra’s operating profit for full-year 2019 was robust from an historical perspective. The forest industry has been, and will continue to be, a cyclical industry,” said Lars Idermark, President and CEO.

In Södra’s well-invested industrial facilities, delivery volumes of the core products market pulp and sawn timber increased during a dramatic price decline.

During the year, handling the effects of the massive spruce bark beetle infestation posed major challenges for Södra. The robust and necessary measures led to higher costs.

“There is every reason to feel optimistic about the future from a long-term perspective. The state of the economy is always changing, but the underlying demand for forest-based products will gradually increase, not least because of increased global prosperity and the rising population. 2020 will be a weaker year financially due to uncertainty surrounding the economic forecast and price trends for market pulp and sawn timber. As a result, Södra will be focused on the areas that we can influence, such as productivity-enhancing measures, product development, innovation and the continued development of our customer relationships,” said Lars Idermark.