Comments on the report

Fourth quarter

The Group’s consolidated net sales for the period decreased by -20 percent compared to last year and amounted to SEK 1,177 M (1,472). The decline is explained by negative price and mix effects of -16 percent and negative organic tonnage growth of -6 percent. Currency effect contributed positively with 2 percent. The weak global economy and the interest situation contributed to a continued drop in steel prices in the fourth quarter. The tonnage to the construction industry dropped by -23 percent while it remained unchanged to the manufacturing industry, where demand from OEM customers remains stable.

Gross profit increased to SEK 114 M (51) whith an improved gross margin of 9.6 percent (3.4) as a result of less declining steel prices and an adjustment of inventory levels contributing to lower inventory losses. The operating result amounted to SEK -37 M (-119), corresponding to an operating margin of -3.2 percent (-8.1). Adjusted for inventory losses of SEK -20 M (-69) the underlying operating result amounted to SEK -17 M (-50) and the underlying operating margin to -1.4 percent (-3.4).

Full-year 2023

During the year, the Group’s net sales decreased by -23 percent compared to last year and amounted to SEK 5,328 M (6,875). The decrease is explained by negative price and mix effects of -15 percent, negative organic tonnage growth of -12 percent, partly counteracted by positive currency effects of 4 percent. Tonnage to the construction industry decreased by -28 percent, mainly affecting the Swedish operation, while the manufacturing industry decreased by -5 percent. Organic tonnage growth within business area Sweden & Poland decreased by -15 percent and Finland & Baltics delivered -8 percent less. Mainly, sales of long and flat products decreased compared to last year.

Gross profit amounted to SEK 544 M (1,009) with a gross margin of 10.2 percent (14.7). The operating result amounted to SEK -52 M (418), corresponding to an operating margin of -1.0 percent (6.1). Adjusted for inventory losses of SEK -76 M (-70) and items affecting comparability of SEK -6 M (-), the underlying operating result amounted to SEK 30 M (488). The underlying operating margin amounted to 0.6 percent (7.1).