Forestry company Coillte reports record revenues but profit slump in 2022 

Coillte saw profits drop from €135m to €119m last year. Picture: Denis Minihane

State forestry management company Coillte has reported a new record high for revenues in 2022 on the back of strong demand in the construction sector. 

However, the company’s operating profit declined to €119m — from €135m in 2021 — as it dealt with increasing operating costs. A dividend of €27.7m was paid to the State which is the maximum payable under the dividend policy. 

According to Coilte’s 2022 financial results, it generated revenue of €479m with €157m in earnings before interest, tax, depreciation, and amortisation.

Coillte said growth in the construction sector meant “demand for product was strong in the first half of 2022". However, that demand "moderated significantly in the second half of the year”.

It said that these factors, combined with relatively solid pricing, resulted in an overall strong financial performance in 2022.

The company is expecting 2023 to be more of a challenging year due to inflationary costs and higher interest rates impacting the business.

Imelda Hurley, chief executive of Coillte, said the company had a “strong performance” in 2022 despite the “end market prices for wood and panel board products being down from the record high levels achieved in 2021”.

“Prices remained relatively strong in the first half of the year with robust demand evident in the construction and home improvement sectors,” she said.

Looking to the rest of this year, Ms Hurley said there is “no doubt” that the business is “seeing the effects of inflation and rising interest rates”.

“These headwinds indicate challenging trading conditions and weaker consumer demand in 2023.” 

Coillte added that a 10-year investment plan at its oriented strand board manufacturing facility in Waterford culminated in the successful commissioning of the €45m upgrade of SMARTPLY’s drying, energy and screening system.

Coillte’s annual spend in its capital investment programme came to €86m in 2022 — down from €94m in 2021.

The company also reported planting over 20 million trees and replanted 8,300 hectares of forests during the year.