Setra Group has reported an operating loss of 101 million kronor for the fourth quarter of 2024, improving from the 191 million kronor loss in Q4 2023.
Setra states that higher raw material costs and timber shortages impacted production, while ongoing investments in sawmill upgrades progressed. The company reports that it successfully processed its first log through the newly installed sawline at its Malå facility.
Additionally, the ramp-up of the small-diameter timber line in Skinnskatteberg continued as planned. According to Setra, these investments aim to enhance processing capacity and efficiency.
For the full year, Setra recorded revenue of 5.18 billion kronor, down from 5.26 billion kronor in 2023. The annual operating loss stood at 215 million kronor, compared to a 237 million kronor loss the previous year.
The return on operating capital remained negative at minus eight per cent. Operating cash flow for the quarter was positive at 111 million kronor, though lower than the 127 million kronor in Q4 2023. However, full-year cash flow turned negative at -237 million kronor, reversing from a positive 337 million kronor in 2023.
According to Setra, market conditions remain challenging, with increased timber prices outpacing the rise in sales prices. The company reports that its sales span global markets, including lumber, engineered wood components, and bio-products such as bark, chips, and sawdust.
Setra states that the weak construction sector continues to limit demand, particularly in key export markets.
Marcus Westdahl, CEO of Setra Group, said: “Despite increasing sales prices, the weak construction market combined with the ever-higher timber prices continues to create a strained situation for sawmills and the wood mechanical industry.
“Setra continues to focus on efficiency and cost control to optimise our production given the current conditions.”
