Latvian Forest Company (LATF) Q4 2024 earnings summary

Executive summary

• Latvian Forest Company manages and acquires forest properties in Latvia and Lithuania, focusing on long-term value creation through forestry and land management.

• 2024 saw significant property sales, investments in new land, and active forest management, including record levels of clearing and planting.

Financial highlights

• Net sales for 2024 were 1,218.7 TEUR, down from 1,427.6 TEUR year-over-year; Q4 sales were 257.1 TEUR, down from 461.0 TEUR.

• Operating profit for 2024 was -256.6 TEUR (vs. -114.8 TEUR); Q4 operating profit was -161.0 TEUR (vs. -466.5 TEUR).

• EBIT for 2024 was 1,406.1 TEUR (vs. -71.7 TEUR); Q4 EBIT was 1,494.1 TEUR (vs. -466.5 TEUR), mainly due to capital gains from property sales.

• Net income for 2024 was 1,779.6 TEUR (vs. 274.1 TEUR); Q4 net income was 1,198.7 TEUR (vs. -648.9 TEUR).

• Earnings per share for 2024 were 0.044 EUR (vs. 0.007 EUR); equity per share was 0.938 EUR (vs. 0.910 EUR).

Outlook and guidance

• The Baltic timber and pulpwood market is expected to remain stable in 2025, with limited price changes.

• Long-term demand for wood and forest products is anticipated to rise, with asset values benefiting from a maturing carbon credit market.

• Management is monitoring market signals for acquisition opportunities as property supply increases.