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2021-10-19

Period-end comment from Setra Q3 2021

Wood products company Setra has reported an operating profit of SEK 600 million (-3) for the third quarter of 2021. Net sales totalled SEK 1,565 million (840).

“In Q3 we see wood product prices reaching a peak at a level that has produced historically high profitability. At the same time, consumption has continued at a good level,” says Setra CEO Katarina Levin.

Setra is reporting a significant earnings improvement of SEK 1,163 million January to September in 2021, compared with the previous year.

In early September, Pyrocell started production in Gävle; Sweden’s first pyrolisis oil plant for biofuels. The new and groundbreaking factory is turning sawdust into bio-oil. Jointly owned by Setra and Preem, Pyrocell was formed in 2018 based on the business concept of producing bio-oil from sawdust.

In July it was announced that Setra is investing in a new saw line for small-diameter logs at the sawmill in Skinnskatteberg. The investment, which will produce major efficiency improvements, is an important step in Setra’s construction strategy and enables concentrated, highly efficient production in a safe working environment in the small-diameter log range in Setra’s southern raw material area.

Cash flow from operating activities amounted to SEK 571 million (-11) in the third quarters, and for the first nine months amounted to 1,009 (392). Net cash totalled SEK 530 million (230) at the end of the period.

Key figures* Jul–Sept (3 months) Jan–Sep (9 months)
2021 2020 2021 2020
Net sales, SEKm 1,565 840 4,278 3,043
Operating profit/loss, SEKm 600 -3 1,219 56
Profit/loss after tax, SEKm 473 -7 958 29
Operating margin, % 38.3 -0.4 28.5 1.8
Return on operating capital, %, RTM 70 -1.8
Cash flow from operating activities, SEKm 571 -11 1,009 392

*Setra does not publish a complete period-end report.