GreenFirst Forest Products Inc. reported net sales for continuing operations of $99.1 million during Q1 2023, a decline of $1.1 million or 1%, compared to Q4 2022. This decrease was primarily due to declining lumber prices ($605/mfbm average realized in Q1 2023 compared to $644/mfbm in Q4 2022), partially offset by higher sales for the paper segment.
The Company reported cost of sales of $106.9 million during Q1 2023, lower by $12.7 million or 11%, compared to Q4 2022. This decrease reflects the impact of lower lumber shipments and lower overall costs compared to Q4 2022.
The Company’s softwood lumber sales to US customers are subject to countervailing and anti-dumping duties as determined by the US Department of Commerce. Duties expensed in Q1 2023 were $6.6 million, a decrease of $1.2 million or 15%, quarter-over-quarter. In August 2023, the company expects its duty rates to drop from 20.23% to 8.24%.
The Company reported selling, general and administration expenses for continuing operations of $5.2 million during Q1 2023 which was a decrease of $0.7 million or 12% compared to Q4 2022.
Q1 2023 net loss from continuing operations was $20.2 million or a $0.11 loss per share (diluted), compared to net loss of $25.9 million or $0.15 loss per share (diluted) in the Q4 2022 on the same basis.
"GreenFirst is now focused on optimizing its core assets in Ontario, supported by a streamlined, cost-effective operating platform. We have strengthened our balance sheet and our recent efforts to improve operational efficiencies have begun to yield positive results," said Paul Rivett, interim CEO and executive Chairman of GreenFirst. "In August 2023, we expect the duty rates to drop from 20.23% to 8.24%, which will increase profitability," added Paul Rivett.
GreenFirst Forest Products is a forest-first business, focused on sustainable forest management and lumber production. The Company owns four sawmills located in rich wood baskets proudly operating over 6.1 million hectares of FSC-certified public Ontario forestlands.