Pre-tax profits at the semi-state forestry company, Coillte, slumped by more than €60 million to €61.5 million for 2023 according to latest financial results published today (Thursday, April 25).
The company, which manages 440,000ha or 7% of Ireland’s land, had reported pre-tax profits of €122.3 million in 2022.
Its latest set of financial results also highlight that Coillte’s annual turnover fell to €413.8 million in 2023 compared to a reported turnover of €478.7 million a year earlier.
The results also show that it paid a dividend to the State in 2023 totaling €17.7 million – in 2022 its dividend payment to the State was €27.7 million.
Coillte refinanced its existing debt facilities last year which it said has resulted “in the availability of €150 million in revolving debt facilities”. It ended the year with net cash of €65 million.
Coillte’s chief executive, Imelda Hurley, said today that the semi-state company had faced “significant headwinds” last year.
“Against the backdrop of volatile market conditions, high inflationary pressures, rising interest rates, lower end-market demand in our core markets and lower prices, Coillte delivered a solid financial performance with earnings before interest, tax, depreciation, and amortization (EBITDA) of €106 million and operating cash of €43 million.
“While this financial outturn represented a decline on the highs of recent years, the business delivered the fourth highest financial performance in its 35 year history,” Hurley added.
She also outlined that the impact of a reduction in global demand for sawlog, Oriented Strand Board (OSB) and Medium Density Fiberboard (MDF) products had resulted in price reductions across key markets for these products including in Ireland, UK and EU.
When Coillte was first established as a commercial semi-state company in 1989, it was responsible for managing a forest estate of 396,000ha.
Over the last 35 years, the organisation has grown the area under management to 440,000ha.
It currently employs more than 800 people directly, and in the region of 1,200 contractors.
Coillte
According to its chief executive Coillte’s “relevance to society is ever increasing”.
It is the largest provider of outdoor recreation spaces in Ireland with 12 forest parks, 260 recreational areas and 3,000km of walking trails in the country.
It is also one of the biggest suppliers of roundwood to the Irish wood processing sector with in the region of three million cubic meters produced each year.
According to Coillte in 2023 almost 8,000ha of land was reforested with 18 million trees and construction of the first windfarm in FuturEnergy Ireland – a joint venture with ESB – was also completed during the year.
This year the semi-state company said it will “advance investment plans in Medite Smartply – Coillte’s market panel board business – and in FuturEnergy, Ireland as well as in “nature restoration projects of scale”.