Coillte, Ireland’s largest forestry and land solutions company, announced its annual results for 2016. The company delivered record earnings before interest, tax, depreciation and amortisation (EBITDA) of Euro 98.3 million, up 10% on the previous year.
Operating cash flow at Euro 15.2 million was up 130% on 2015 while operating profit (before exceptional items and revaluation gains) increased by 6.6% to Euro 64.4 million. Record revenue earned of Euro 287.7 million in 2016.
Commenting on the results the Chief Executive of Coillte, Fergal Leamy said: “During 2016 we made considerable progress towards achieving our ambitious financial and operational targets. A key focus of our new strategy is to grow operating cash flows so that we can increase the return to our shareholder. In 2016 operating cash increased significantly to Euro 15.2 million from Euro 6.5 million in 2015. Historically operating cash has been negative or breakeven. The significant growth in operating cash gives us further confidence that we can achieve our 5% cash yield target by 2020 and we have set ourselves the challenge of more than doubling operating cashflows in the next two years.
Focusing on our cost base has also been a key objective and we have made very good progress towards a structural shift which will realise cost savings of the order of Euro 15 million per annum over the next two years.”
