RusForest AB generated revenue of $7.3 million in 1Q 2016 compared to $5.6 million in 1Q 2015, as the company said in the press release received by Lesprom Network.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) improved 51% year-on-year, and amounted to $3 million in 1Q 2016 compared with $2 million in 1Q 2015.
The Company’s continuing operations achieved a gross profit of $4.1 million in 1Q 2016, representing a 55% gross profit margin, compared with gross profit of $2.9 million and gross profit margin of 52% in 1Q 2015.
The operating profit in continuing operations was $2.2 million in 1Q 2016, compared with $1.2 million in 1Q 2015. In 1Q 2016 there were no discontinued operations.
Profit for the period in 1Q 2016 amounted to $1.2 million, compared with $1.7 million in 1Q 2015. Considering that operational profitability had improved in 1Q 2016 the main reason for the lower net profit is net finance cost and specifically the currency exchange loss due to a Russian rouble which strengthened in 1Q 2016.
Anton Bogdanov, CEO of RusForest Management Company, commented: “Core sawmilling operations in Magistralny performed well in 1Q, with the highest quarterly output ever. The newly launched wood pellet mill and own harvesting operations in Ust-Ilimsk also performed well, although still in a ramp-up phase. Stable core operations together with the new business activities generated significantly increased revenue as well as improved operational profitability compared with 1Q 2015. The Central Asian and Northern African markets remained difficult in 1Q 2016, however, the Company managed to redirect more low quality product sales to the Japanese market instead.”
RusForest is a Swedish forestry company operating in Eastern Siberia. The Company controls long-term timber leases and utilizes these resources to produce a wide range of sawnwood products.
