York Timber Holdings’ share price fell 3.41% on Friday to R1.70 after it said in a trading statement that it expected to report a loss per share and headline loss per share for the year ended June 30, 2023.
It said earnings per share and headline earnings per share were expected to decrease by at least 90 cents, from 26 cents for the year ended June 30, 2022, respectively. The share price has fallen steadily from R2.60 a year ago.
The integrated forestry group said profitability had been impacted by price increases in external logs purchased and higher operational costs could not be recovered in selling prices.
Operational challenges negatively impacted the results. York’s strategy to increase the clear-fell age of its plantations resulted in reduced harvesting from its own plantations.
This required an increase in external log purchases where prices had risen significantly despite a reduction in lumber selling prices.
The prior comparative period figures were restated for the issue of York ordinary shares pursuant to a rights offer implemented in January.
BUSINESS REPORT