Comments on the report

First quarter

The Group’s consolidated net sales for the period decreased by 16 percent compared to last year, amounting to SEK 1,558 M (1,845). The decline is explained by decreased organic tonnage growth of -15 percent and price and mix effects of -5 percent, partly compensated by positive currency effects of 4 percent. The latter part of the first quarter of 2022 was strongly impacted by the wave of hoarding caused by Russia’s invasion of Ukraine. The current business environment has contributed to decreased demand and declining steel prices with a clear slowdown from the construction sector, while demand from the manufacturing industry and OEM customers remains stable.

Lower demand and falling steel prices pressured gross profit to SEK 159 M (327) which resulted in a gross margin of 10.2 percent (17.7). The operating result amounted to SEK 1 M (184), corresponding to an operating margin of 0.0 percent (10.0). Adjusted for inventory gains and losses of SEK -9 M (4), the underlying operating result amounted to SEK 10 M (180). During the period, the underlying operating margin amounted to 0.6 percent (9.8).