BUSINESS AREA
FINLAND & BALTICS

The business area includes the Group’s operations in Finland and the three Baltic countries.

First quarter

Net sales decreased by -21 percent during the first quarter compared to last year amounting to SEK 621 M (782). It is explained by negative price and mix effects of -13 percent and a decrease in organic tonnage of -8 percent. The operating result amounted to SEK -21 M (3). Adjusted for inventory gains of SEK 2 M (9) and items affecting comparability of SEK -27 M (-), the underlying operating result increased to SEK 4 M (-6).

The Finnish operations generated an increased underlying operating result compared with the previous year despite lower sales and delivery shortfall as a result of the political strike. Decreased tonnage and lower steel prices were compensated by a higher gross margin.

The Baltic operations provided a negative underlying result. During the quarter, a decision was made to close the operations that have been generating losses for an extended period despite extensive improvement measures. Net sales in 2023 was SEK 268 M and the operating result amounted to SEK -10 M. The closure will take place during the second quarter 2024 and affects approximately 25 employees. Non-recurring costs are estimated to amount to approximately SEK -27 M and have affected the result for the first quarter. The closure is estimated to generate a positive cash flow of approximately SEK 30 M and will have a positive impact on the company’s future results.