Södra posted a robust result for the second quarter of 2022. The result reflects the sustained strong market for Södra’s core products in pulp and softwood lumber but the market outlook is highly uncertain.
In the second quarter of 2022, net sales for the Södra Group amounted to SEK 8,953 million (7,287), up 23 percent compared with the year-earlier period. Operating profit totalled SEK 2,325 million (1,326), the highest quarterly result for Södra to date. Operating profit for the first half of 2022 totalled SEK 4,299 million (1,873). Return on capital employed was 39 percent (18), and the equity ratio was 61 percent at the end of the period.
The second-quarter result reflects the favourable market conditions, with strong demand and highly favourable prices for Södra’s core products, primarily pulp. In addition, Södra’s mills delivered high production volumes with stable quality and Södra Cell, for example, increased both production volumes and outbound deliveries during the period.
“The result is gratifying for us and for Södra’s 52,000 members. Price levels for our core products have been favourable for a long time and the production volumes of our mills have been high. Combined with the hard work of Södra’s members and employees, this led to a strong result for the second quarter of 2022,” said Lotta Lyrå, President and CEO.
“Market uncertainty has increased considerably due to global turmoil and negative economic growth. This could affect our core products moving forward, as slowing demand in Europe’s consumer-oriented building materials trade at the end of the quarter has already shown. We are monitoring the situation closely, continuing to focus on what we can influence and working hard every day to strengthen Södra’s long-term competitiveness,” said Lotta Lyrå.
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