Södra posted operating profit of SEK 891 million ($108 million) for 2020, a year challenged by the pandemic, slowing global growth and a widespread spruce bark beetle outbreak. Net sales amounted to SEK 20,351 million ($2.4 billion).

Södra’s operating profit decreased to SEK 891 million ($108 million) in 2020

Södra’s operating profit decreased to SEK 891 million ($108 million) in 2020

Photo: Lotta Lyrå, President and CEO of Södra. Photographer: Alexander Hall/Södra

In 2020, Södra’s consolidated net sales amounted to SEK 20,351 million ($2.4 billion) and operating profit totalled SEK 891 million ($108 million). The decline in sales was attributable to considerably lower price levels for market pulp and lower prices for sawn timber throughout the year, as well as negative exchange-rate effects.

At the same time, delivery volumes for Södra’s core products were higher year-on-year. Return on capital employed was 2% and the equity ratio was 57%. At the Annual General Meeting on 1 June 2021, the Board will propose a profit distribution of SEK 598 million ($72.3 million) to members, corresponding to 80% of profit before tax.

“The year was marked by uncertain and turbulent conditions all over the world, which had a negative effect on the market and led to a lower result. It has been challenging for us and our forest-owning members. Our primary focus has been to safeguard the health of our employees, members, contractors and customers. But despite the tougher financial market situation, Södra stands strong,” said President and CEO Lotta Lyrå.

“The starting point for Södra’s new Group strategy, 2025+, is to create profitable and sustainable growth in an ever-changing world. By continuing to focus on what we can influence, and process wood raw material into climate-smart products and solutions, we will build an even more efficient Södra and strengthen the profitability of family forestry. Demand for forest-based products will gradually increase as the bioeconomy grows,” said Lotta Lyrå.

Founded in 1938, Södra is Sweden’s largest forest-owner association, with 53,000 forest owners as its members.

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