Södra has disclosed a steady performance for the first quarter of 2024. Company's net sales amounted to SEK 7,613 million (8,002), marking a 5% decrease compared to the same period last year. Operating profit stood at SEK 568 million (1,085), representing an operating margin of 7% (14). Return on capital employed reached 9% (19), while solvency decreased to 63%.
The first-quarter results align with expectations given market conditions and the global economic environment. The performance reflects subdued construction activity and reduced availability in the raw material market. Facing a slowdown in lumber demand amidst external changes, the company emphasizes the need for continual innovation and investment to meet customer needs.
One notable move is the ongoing investment in green electricity production and electrification, aimed at maximizing the use of timber from family forest holdings. This strategy aligns with the growing demand for sustainable energy solutions.
As part of its commitment to sustainability and competitiveness, Sodra has announced investments in a new condensing turbine at its facility in Mörrum and an electric heavy truck for wood chip transport.
Despite global market uncertainty, Sodra highlights strong demand for timber from family forest holdings, leading to price increases for timber and logging residues.
