Latvian Forest Company (LATF) Q2 2024 earnings summary

Executive summary

• Revenue for H1 2024 was €421.8k, down from €447.3k year-over-year, with a net loss of €803.2k compared to a profit of €1,287.7k in H1 2023.

• Operating loss improved to -€112.2k from -€163.1k, but a negative forest value change of -€488k weighed on results.

• The company expanded its forest holdings to 8,284 hectares, with a standing timber volume of 1,150,000 m³.

• A rights issue raised SEK 27.3m to fund expansion and repay shareholder loans.

Financial highlights

• Revenue declined 5.7% year-over-year to €421.8k; operating loss narrowed to -€112.2k.

• Net loss per share was -€0.020, down from €0.035 EPS in H1 2023.

• Equity per share at period end was €0.874, down from €0.941 a year earlier.

• Cash flow from operations improved to -€178.3k from -€430.3k year-over-year.

• Total assets increased to €42.6m from €41.9m year-over-year.

Outlook and guidance

• Management expects improved timber prices in H2 2024 and has reduced harvest volumes in anticipation.

• The company will continue to seek attractively priced forest acquisitions in Latvia and Lithuania.