Södra Reports Record Results for 2022 on Favorable Market Conditions
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Södra posted a record result for 2022. The association's operating profit totaled SEK 7,805 million and Södra's Board proposes a profit distribution of SEK 3,243 million to members. The result is attributable to high industrial production combined with favorable market conditions during the year.
In 2022, the Södra Group's net sales rose 23 percent to SEK 33,367 million (27,060). Södra's operating profit totaled SEK 7,805 million (5,316), the highest annual figure ever posted by the company, and a year-on-year increase of 47 percent. At year-end, return on capital employed was 35 percent (25) and the equity ratio was 65 percent (63).
Södra's Board proposes a profit distribution of SEK 3,243 million to members, the highest-ever figure for a single year. The total corresponds to an average distribution of SEK 63,010 per member and 42 percent of profit before tax. The proposal will be resolved by the Annual General Meeting in Lund on 31 May 2023.
2022 Results
The 2022 result is a product of the high volumes of good quality delivered by Södra's mills, while the market was characterized by favorable price levels for Södra's core products, and a positive exchange-rate effect. In 2022, a record amount of paper pulp was produced and Södra's pulp mills delivered 140,000 metric tons more than in 2021. In addition, the Group's focus on world-class efficiency has so far created efficiency gains corresponding to just over SEK 300 million on a full-year basis, which also contributed to the result.
"Södra delivered a record result for the year. 2022 was an intense year, and this result confirms the combined strength of the association's 51,000 members and 3,300 employees. It 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.
"We are delighted and proud to be proposing a record distribution. We have an exceptional time behind us and over the years, many members have been contributing to the association's strong performance. It is important that the result is shared with our members — especially at a time when many are directly impacted by high energy prices and other challenges. The Södra Model is based on rewarding active members and it is proving its strength once again," Lyrå said.
