Wood products company Setra has reported an operating profit of SEK 177 million ($20.8 million) for the 1Q 2021. Net sales totalled SEK 1,184 million ($139 million), compared to SEK 1,094 million ($128 million) in 1Q 2020.
“The healthy demand and robust price levels we have seen in the 1Q look like they’re continuing in 2Q. Our employees deserve real praise for the significant responsibility they take in their day-to-day work to ensure the Covid-secure operation of the business,” said Setra CEO Katarina Levin.
Setra is reporting an earnings improvement of SEK 165 million ($19.4 million) for the 1Q 2021 compared with the same period last year. The improvement was due to high selling prices as a result of strong market development and positive currency effects.
Setra’s strategic investment in a pyrolysis plant in Gävle’s Kastet industrial area is proceeding according to plan, with construction of the groundbreaking factory, to convert sawdust into non-fossil-based pyrolysis oil, underway since March. The facility is expected to enter operation in the 4Q of this year.
Cash flow from operating activities in the 1Q 2021 amounted to SEK -85 million ($10 million). The negative cash flow was due to an increase in working capital. Net financial debt amounted to SEK 415 million ($48.8 million) at the end of the period, which corresponds to a net debt/equity ratio of 25%.
Setra is one of Sweden’s largest wood products companies and a leading player in Europe.
