Latvian Forest Company (LATF) Q1 2025 earnings summary

Executive summary

• Net sales for Q1 2025 were 138.1 TEUR, down from 169.2 TEUR year-over-year.

• Operating result was -181.5 TEUR, compared to -99.3 TEUR in Q1 2024.

• Net result after tax was -2,574.8 TEUR, a significant decline from -1,117.7 TEUR year-over-year, mainly due to negative revaluation of forest assets.

• 208 hectares of land acquired in Q1 2025, including 88 ha forest, 47 ha agricultural, and 73 ha other land.

• No property sales during the quarter; 1,570 m³ harvested, mainly in Latvia, at an average price of 41 EUR/m³.

Financial highlights

• Net sales: 138.1 TEUR (Q1 2024: 169.2 TEUR).

• Operating result: -181.5 TEUR (Q1 2024: -99.3 TEUR).

• Net result: -2,574.9 TEUR (Q1 2024: -1,117.7 TEUR).

• EPS: -0.064 EUR (Q1 2024: -0.030 EUR).

• Book value of fixed assets: 38,920.9 TEUR (Q1 2024: 40,391.7 TEUR).

Outlook and guidance

• Baltic timber and pulpwood markets expected to remain stable in 2025 with limited price changes.

• Long-term demand for timber and forest products anticipated to rise, with asset values expected to increase as carbon credit markets mature.