Tornator (TORNATOR) H1 2024 earnings summary

Executive summary

• Turnover rose 1.0% year-over-year to €85.1 million, driven by higher wood prices despite slightly lower delivery volumes.

• Operating profit (IFRS) was €60.8 million, down 54% from €131.0 million a year ago, mainly due to lower fair value changes in biological assets.

• Nearly 15,000 hectares of new forestland were acquired in Finland, with investments totaling almost €50 million.

• The company advanced its Biodiversity Program, restoring 115 hectares of peatland and burning 41 hectares of forest.

• Silviculture services turnover increased by over 50%, reaching €6.6 million.

Financial highlights

• Net sales: €85.1 million (up 1% year-over-year).

• Operating profit (IFRS): €60.8 million (down 54% year-over-year).

• Profit for the period (IFRS): €40.1 million (down 60% year-over-year).

• Comparable net profit: €38.3 million (down 7% year-over-year).

• Cash flow from operations before financial items: €34.8 million.

Outlook and guidance

• Cash flow and debt service capacity expected to remain stable and solid for the rest of 2024.

• Timber demand and prices are projected to stay strong, with market prices expected to remain at current levels in the short term.

• The company will update its long-term sustainable planned cut in autumn and conduct a fair value update of forests in Q4.