Tornator’s net sales up by over 11% – demand for sustainably produced wood raw material remained high


Tornator Oyj

Half-year report –Stock exchange release, 24 August 2023 at 8 AM

SUMMARY 1 JAN – 30 JUNE 2023 (1 JAN – 30 JUNE 2022)                   

  • Net sales increased by 11.3% to €84.2 million (75.7). The ending of timber imports from Russia and the energy crisis had a positive impact on wood demand and prices. 
  • Operative operating profit increased by 7.3% to €60.8 (56.7) million. The operating profit as reported in accordance with the International Financial Reporting Standards (IFRS) was €130.1 million (46.0). The increase is explained by the application of the method of calculating the fair value of forestland based on transaction prices in the forest holdings market during the reporting period, and the resulting positive change in value (the method was not yet in use in the reference period).  
  • Tornator continued to purchase forestland in Finland. Nearly 10,000 hectares of new forestland was acquired, with a total investment of almost €50 million.
  • The company increased its investment capacity by agreeing an addition of €100 million to its existing Revolving credit facility. In addition, the company restructured its long-term interest rate hedges to reduce direct financing costs and shorten the average maturity of the hedges. At the same time, the exposure of the interest rate hedge portfolio to changes in fair value due to fluctuations in market interest rates is significantly reduced.
  • IFRS profit at fair value for the reporting period was €100.0 million. The change in the fair value of interest rate instruments was +€2.6 million (+94.6) before taxes. The increase in statistical prices in the forestland market had a positive impact of €63.4 million (-10.1) before taxes on the fair value of the growing stock.
  • Comparable return on equity was 4.2% (6.3) and 10.1% (16.8) at fair value. The equity ratio was 59.5% (53.3).

Key figures (consolidated)

Key figures (consolidated)

 H1/2023H1/2022Change, %
Net sales, € million84.275.711 %
Operating profit (IFRS), € million131.046.0185 %
Operating profit, %155.560.7156 %
Profit for the period (IFRS), € million100.0107.8-7 %
Return on equity, %10.116.8-40 %
Return on capital employed, %9.34.5108 %
Equity ratio, %59.553.312 %
Average number of personnel1881880 %
The key figures are calculated according to the International Financial Reporting Standards (IFRS).

Comparable key figures

 H1/2023H1/2022Change, %
Net sales, € million84.275.711 %
Operative operating profit, € million60.856.77 %
Operative operating profit, %72.274.9-4 %
Comparable net profit, € million41.340.62 %
Comparable return on equity, %4.26.3-34 %
Comparable return on capital employed, %4.45.5-21 %

In addition to the official key figures presented above, the Tornator Group uses alternative performance measures that are comparable between years, thus better describing the success of operations. The comparable key figures have been calculated without fair value changes and apply to the whole Group. The key figures are calculated as follows:

Operating profit, IFRS  131,0
- Change in fair value of biological assets  63,4
    - Change in fair value of provisions and and receivables
   from additional wind power sales prices 
 6,7
= Operative operating profit, comparable 60,8
    
Profit for the period, IFRS  100,0
- Change in fair value of biological assets  63,4
- Change in fair value of provisions and long-term receivables 6,7
- Change in fair value of financial instruments 2,6
- Share of taxes of above mentioned items -14,1
= Comparable net profit  41,3

For further information, please contact:

Chief Executive Officer (CEO) Henrik Nieminen, tel. +358 40 869 7613

Chief Financial Officer (CFO) Antti Siirtola, tel. +358 40 773 0975

www.tornator.fi/en

Tornator is a leader in sustainable forestry in Europe. It owns forests in Finland, Estonia and Romania. In 2022, the group’s turnover was approximately €165 million, and the balance sheet value was about €3.2 billion. The group has around 190 employees. Tornator’s own employees, and other companies and their employees working on its forestland, add up to around 1,500 person-years of employment. The owners of the parent company are Finnish, mainly institutional investors. Tornator’s mission is to generate sustainable wellbeing from forests

Tables – Condensed half-year financial statements and notes

EUR thousand 30 June 2023 30 June 2022 31 Dec 2022
  (unaudited) (unaudited) (audited)
Net sales 84,204 75,672 164,641
Other operating income 4,391 2,583 11,666
       
Change in fair value of biological assets and harvesting 63,420 -10,121 462,166
Change in inventories of finished goods and work in progress -254 -993 -2,488
Materials and services -12,437 -10,342 -30,071
Personnel expenses -5,584 -5,170 -10,301
Depreciation and amortisation -1,653 -1,638 -15,019
Reversal of impairment 3,400    
Other operating expenses -4,528 -4,032 -8,577
Operating profit 130,959 45,960 572,017
       
Financial income 982 187 480
Financial expenses -12,088 -6,830 -14,118
Change in fair value of financial instruments 2,636 94,572 110,902
Net financial items -8,470 87,930 97,264
       
Profit before tax 122,490 133,890 669,281
       
Income taxes -9,510 -28,413 -42,897
Change in deferred taxes -13,004 2,343 -84,456
Profit for the period 99,976 107,820 541,927
       
Distribution:      
To shareholders of the parent company 99,976 107,820 541,927
       
Consolidated statement of comprehensive income      
       
Profit for the period 99,976 107,820 541,927
Other comprehensive income for the period after taxes:      
Items not recognised later through profit and loss      
Other items of comprehensive income (after taxes)     31
       
Items that may later be recognised through profit and loss      
Translation difference -29 4 -28
Revaluation of forest land 2,137   211,424
Comprehensive income for the period total 102,084 107,823 753,355
       
Distribution:      
To shareholders of the parent company 102,084 107,823 753,355


Condensed consolidated balance sheet      
       
EUR thousand 30 June 2023 30 June 2022 31 Dec 2022
  (unaudited) (unaudited) (audited)
ASSETS      
Non-current assets      
Forest assets 3,219,492 2,329,029 3,101,049
Biological assets 2,844,251 2,222,936 2,737,264
Bare land 375,242 106,093 363,785
Other property, plant and equipment 15,737 15,562 16,006
Intangible assets 1,734 1,205 1,984
Right-of-use assets 1,820 1,944 1,911
Derivatives 43,692 36,130 42,352
Other investments 111 111 111
Non-current receivables 10,447 18,733 7,513
Non-current assets total 3,293,034 2,402,713  3,170,926
       
Current assets      
Inventories 90 45 92
Accounts receivable and other receivables 62,139 51,078 53,061
Investments 932 2,323 356
Cash and cash equivalents 5,604 2,836 19,244
Current assets total 68,765 56,283 72,753
       
Total assets 3,361,799 2,458,997 3,243,679
       
EQUITY AND LIABILITIES      
Equity attributable to shareholders of the parent company      
Share capital 50,000 50,000 50,000
Other equity 1,943,931 1,256,315 1,901,847
Total equity 1,993,931 1,306,315 1,951,847
       
Liabilities      
Non-current liabilities      
Deferred tax liabilities 433,361 280,224 419,823
Financial liabilities 799,103 748,844 749,052
Derivatives   11,844 1,620
Lease liabilities 1,578 1,720 1,644
Other non-current liabilities 186 237 186
Non-current liabilities total 1,234,228 1,042,869 1,172,325
       
Current liabilities      
Financial liabilities 98,351 62,858 69,016
Accounts payable and other payables 23,025 17,708 23,626
Income tax liabilities 1,646 19,824 15,188
Lease liabilities 340 303 355
Provisions 10,278 9,120 11,323
Current liabilities total 133,640 109,813 119,508
       
Total liabilities 1,367,868 1,152,682 1,291,833
       
Total equity and liabilities 3,361,799 2,458,997 3,243,679

Statement of changes in equity

EUR thousand Share capital Share premium Translation difference Revaluation reserve   Retained earnings Total equity
Equity 1 January 2023 50,000 29,995 -10,877 211,424   1,671,304 1,951,847
               
Comprehensive income              
Profit for the period           99,976 99,976
Other items of comprehensive income (after taxes)              
Revaluation of forest land       2,137     2,137
Translation difference     -29       -29
Comprehensive income for the period     -29 2,137   99,976 102,084
Transactions with shareholders              
Dividends paid           -60,000 -60,000
Total transactions with shareholders           -60,000 -60,000
Equity 30 June 2023 (unaudited) 50,000 29,995 -10,906 213,562   1,711,280 1,993,931
               
               
Equity 1 January 2022 50,000 29,995 -10,849     1,189,346 1,258,492
               
Comprehensive income              
Profit for the period           107,820 107,820
Other items of comprehensive income (after taxes)              
Translation difference     4       4
Comprehensive income for the period     4     107,820 107,823
Transactions with shareholders              
Dividends paid           -60,000 -60,000
Total transactions with shareholders           -60,000,0 -60,000,0
Equity 30 June 2022 (unaudited) 50,000 29,995 -10,845     1,237,166 1,306,315
               
               
               
Equity 1 January 2022 50,000 29,995 -10,849     1,189,346 1,258,492
               
Comprehensive income              
Profit for the period           541,927 541,927
Other items of comprehensive income (after taxes)              
Revaluation of forest land       211,424     211,424
Other items of comprehensive income (after taxes)           31 31
Translation difference     -28       -28
Comprehensive income for the period     -28 211,424   541,958 753,355
Transactions with shareholders              
Dividends paid           -60,000 -60,000
Total transactions with shareholders           -60,000,0 -60,000,0
Equity on 31 Dec 2022 50,000 29,995 -10,877 211,424   1,671,304 1,951,847


 

Condensed statement of cash flows
     
       
EUR thousand 1 Jan - 30 Jun 2023 1 Jan - 30 Jun 2022 1 Jan – 31 Dec 2022
Cash flow from operating activities      
Cash receipts from transactions in forestry 72,113 46,619 140,099
Cash receipts from transactions in land sales 968 3,559 5,201
Cash receipts from other operating income 3,152 3,096 24,272
Cash paid to suppliers and employees -28,737 -23,433 -49,356
Cash flow from operating activities before financial items and taxes 47,496 29,841 120,217
Interest paid, interest-bearing debt -8,536 -1,390 -9,191
Interest received -142 -2,628 -4,405
Other financial expenses -1,016 -540 -798
Interest received 788 113 428
Income taxes -20,783 -19,602 -41,294
Cash flow from operating activities 17,807 5,794 64,956
       
Cash flow from investing activities      
Investments in biological assets -43,872 -23,674 -67,094
Investments in tangible assets, forestland -5,422 -2,926 -8,293
Investments in other tangible and intangible assets -868 -669 -3,466
Investments in money market funds -576    
Proceeds from sale of unlisted securities   4,724 6,690
Cash flow from investing activities -50,738 -22,545 -72,162
       
Cash flow from financing activities      
Withdrawal of long-term loans      
Repayment of long-term loans     -3
Withdrawal of short-term loans 79,485 62,961 70,000
Repayment of short-term loans      
Repayment of leasing liabilities -174 -177 -343
Dividends paid -60,000 -60,000 -60,000
Cash flow from financing activities 19,311 2,784 9,654
       
Net increase/decrease in cash and cash equivalents -13,620 -13,967 2,448
       
Cash and cash equivalents at beginning of period 19,244 16,802 16,802
Effect of exchange rate changes on cash and cash equivalents -21 1 -6
       
Cash and cash equivalents at end of period 5,604 2,836 19,244


 

Attachment



Attachments

Tornator Half-year Report 30 June 2023

Contact Data