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.
- 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.