Comments on the report

First quarter

The Group’s consolidated net sales for the period increased by 68 percent compared to last year, amounting to SEK 1,845 M (1,100). The increase is explained by positive price and mix effects of 62 percent, organic tonnage growth of 4 percent and positive currency effects of 2 percent. After a pending start of the quarter characterized by the pandemic and lack of components, demand significantly increased by the end of the quarter after Russias invasion of Ukraine on February 24. Sanctions directed towards Russia, shortage of inputs and rising energy costs led to significant price increases among the producers.

Higher steel prices and volume contributed to an increased gross profit of SEK 327 M (207) and resulted in a gross margin of 17.7 percent (18.9). The operating result increased to SEK 184 M (86), corresponding to an operating margin of 10.0 percent (7.8). Adjusted for inventory gains of SEK 4 M (18), the underlying operating result increased to SEK 180 M (68). The underlying operating margin during the period increased to 9.8 percent (6.1) and the improvement is attributable to high steel prices in combination with increased tonnage.