today at 09:29
,Germany
The state-owned enterprise Forests of the Czech Republic significantly improved its financial performance. In the first three quarters of this year, it increased its gross profit by 13% year-on-year to 4.36 billion CZK. The better result was primarily driven by favorable developments in the timber market, higher harvesting and revenues, and a simultaneous reduction in some costs.
According to the enterprise, the positive result is mainly linked to an increase in harvesting. Forests of the Czech Republic harvested five percent more timber year-on-year, totaling 6.2 million cubic meters. The higher harvesting volume also reflected in revenues – income from own products and services rose by ten percent to 12.04 billion CZK.
The revenue growth was primarily driven by better monetization of timber and sustained high demand for coniferous assortments. The stable interest of buyers in coniferous wood is one of the key factors behind this year's improved financial results.
However, the increase in profit was not solely due to higher revenues. Lower costs for silvicultural activities, which in previous years were burdened by the bark beetle calamity, also had a significant impact. Additionally, the enterprise recorded higher income from the sale and lease of assets, as well as from other products and services.
Forests of the Czech Republic manage nearly half of all forests in the country, and their financial performance thus has a significant impact not only on the forestry sector but also on public finances. This year's results indicate the stabilization of the enterprise after a challenging period of calamities and confirm that the situation in the timber market remains favorable for the state-owned company.
