Although the forest industry was not producing at full capacity, competition for logs and pulpwood was strong. Wood prices continued to increase, which further increased profit from forest to SEK 452 million. Our position in the wood market, with good control over the raw materials and the entire value chain, is becoming increasingly important as demand for forest raw materials grows. It ensures the security of our raw material supplies and puts us in a good position to develop our industries.

Electricity prices in the Nordics were higher than normal due to a cold winter and low hydro and nuclear power production. At SEK 208 million, profit from energy were largely unchanged compared with the previous quarter, where higher electricity prices were offset by lower hydro power production. During the quarter we decided to invest SEK 1.5 billion in the construction of Blisterliden Wind Farm, which will increase our electricity production from hydro and wind by 20 per cent.

The wood products market continued to be marked by weak construction activity, but prices still increased due to a global shortage of raw materials. However, the price increase was not enough to offset the increased cost of logs, resulting in a SEK -26 million loss from wood products. With well-invested sawmills and an increased processing capacity, we will be in a strong position when the construction market turns.

The consumer paperboard market recovered somewhat as our customers’ stocks are back to normal levels. Paperboard prices have been under pressure but stabilised during the quarter. For paper, demand was largely unchanged after a significant decrease the previous year. Paper prices slightly decreased. Despite lower pric-es and higher raw material costs, board and paper delivered a profit of SEK 370 million. By bringing our pro-cess industry expertise together, we are improving our capacity for business development in consumer paperboard as well as transport packaging, books and magazines.

Holmen has developed well by creating added value from the forest and land we own, and our business model is now focused on four distinct business lines, i.e. forestry, hydro and wind power, woodworking in-dustry and process industry operations. With our large forest holdings as a foundation, we grow houses while also harnessing the energy that blows over the treetops and flows in the rivers. We then make renewable packaging, magazines and books from the residual forestry products. Our strong financial position equips us well for a world that is set to transition to a fossil-free society.


Henrik Sjölund
CEO and President, Holmen
April 26, 2024