Södra posted a record result of SEK 5,316 million for 2021 due to favourable market prices and stable industrial production. Södra’s Board proposes a profit distribution of SEK 2,239 million.
In 2021, the Södra Group’s net sales rose 33 percent to SEK 27,060 million (20,351). Operating profit totalled SEK 5,316 million (891). Return on capital employed was 25 percent (2) and the equity ratio was 63 percent (57) at year-end.
The profit distribution proposed by Södra’s Board reflects the annual result, as well as dividends on members’ wood deliveries for both 2020 and 2021. SEK 206 million will be distributed for wood deliveries in 2020 and SEK 687 million for 2021. The Board will propose a profit distribution of SEK 2,239 million to members at the Annual General Meeting on 24 May 2022. This corresponds to 43 percent of profit before tax.
Lotta Lyrå: Gratifying result for Södra’s 52,000 members
“Södra delivered a record performance for the year. The result is a product of an exceptional market in many respects for our core products in pulp and sawn timber, while our mills delivered high-quality and stable volumes. The positive result reflects the key role of family forestry in the climate transition, combined with the fantastic efforts of our members and employees during the year,” said Södra’s President Lotta Lyrå.
“The result is gratifying for Södra and our 52,000 members, with two challenging years behind us due to the pandemic. We need to see these unique years as a whole, rather than two separate years. The record result for 2021 is also due to the efforts carried out during the crisis year of 2020. These past two years have been extraordinary, and we are therefore happy to be making a record distribution to our members.”
Several initiatives during the year
In 2021, Södra made several strategic investments to promote long-term value generation for our owners and to continue creating sustainable and profitable growth:
- In March, the Innovation Business Area was formed to focus on the commercialisation of new business and to build partnerships and collaborations. Södra Building Systems (timber-frame construction) and OnceMore® (textile recycling) are included in the new business area.
- Ture Johanssons Trävaru AB and AB Tenhults Impregneringsverk were acquired to strengthen the industrial structure along the E4 motorway. The sawmill and the timber treatment facility are filling an important gap in Södra’s wood sales, while also strengthening Södra’s offering to the Swedish building trade.
- In addition, Södra continued to develop its core business. In 2021, new investments were made at Södra Cell Värö to achieve production capacity of 780,000 tonnes per year. The World-class efficiency project also commenced during the year. Södra will use digitisation to improve efficiency and increase the result by SEK 1 billion by 2024.
“As we emerge from the pandemic, we are keeping a close eye on how the market is responding. At the same time, the climate transition is creating long-term demand for forest raw material. This raw material holds the key to both carbon storage and the phase-out of fossil-fuel materials, and we are continuously assessing opportunities to maximise the benefits of wood fibre. We want to take a leading position in this development and be robust enough to withstand market fluctuations, but also flexible enough to adapt to changes in our business environment. In 2022, several projects will therefore be implemented in key strategic areas, including member offerings and biodiversity,” said Södra’s President Lotta Lyrå.
The profit distribution comprises:
- Dividend on wood deliveries: SEK 893 million (corresponding to 4 percent for 2020, and 12 percent for 2021)
- Dividend on contributed capital: SEK 765 million (corresponding to 15 percent)
- Bonus issue: SEK 581 million (corresponding to 30 percent)
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