“The strong deliveries continued in the first quarter, but unfortunately with negative margins for Setra. This is mainly down to low prices and high raw material costs combined with higher electricity costs,” explains Setra’s CEO Katarina Levin.
Prices picked up over the quarter, but not enough to compensate for the rising costs of raw materials, electricity and fuel. Activity in most markets was slightly better than expected, with the exception of the Swedish market, which was characterised by a marked decline in new housing construction. However, the construction of commercial and public buildings has shown better activity, relatively speaking.
In mid-February, it was announced that Setra has appointed Marcus Westdahl as the new CEO of the company. Marcus Westdahl is currently CEO of EFG European Furniture Group and has held several other senior positions in the wood and paper industries over the past 20 years. Setra’s current CEO Katarina Levin informed the Board in October 2022 that, for personal reasons, she would be leaving her position at the company’s Annual General Meeting on 8 May 2023. Marcus Westdahl will take up his position on 9 May 2023.
During the quarter it was announced that Setra and builders’ merchant Karl Hedin Bygghandel have entered into an agreement regarding deliveries of glulam. The basis of the agreement between the two companies is that they will be priority partners for each other.
Sustainability, flexibility and fast-paced deliveries will define the construction of Renshammarskolan in Bollnäs, for which Setra will shortly deliver 2,200 cubic metres of CLT. It is the company’s largest ever volume of CLT supplied for a single building.
Cash flow from operating activities in the first quarter amounted to SEK -82 million (8). Net cash totalled SEK 1,319 million (1,563) at the end of the period.
|Key figures*||Jan–March (3 months)|
|Net sales, SEKm||1,414||1,834|
|Operating profit/loss, SEKm||-64||480|
|Profit/loss after tax, SEKm||-49||378|
|Operating margin, %||-4.5||26.2|
|Return on operating capital, %, RTM||31||95|
|Cash flow from operating activities, SEKm||-82||8|
* Setra does not publish a complete period-end report.