Timber producer and processor
In its six months to
In the period, lumber production fell to 28 400 compared to 55 800 cubic metres recorded in June last year, while treated poles production fell to 6 000 cubic metres by
In a statement accompanying the half year trading update
"Currently there is increasing demand for our poles in the region and an increase in both production and sales is anticipated in the next quarter."
He went on to outline that, "Lumber production was lower compared to same period prior year due to low production at the Charter Sawmill caused mainly by power outages, which in turn had a knock-on effect on sales volume as it resulted in lower sales compared to prior year.
"However, the improved quality and value addition at the mills resulted in improved average selling prices and better revenue."
Revenue in the period under review grew to close the half year at
Revenue saw positive improvement compared to prior comparable period mostly driven by better average selling prices (ASP) on both lumber and poles.
However, despite the improved revenue; profit for the year was lower, mainly attributed to exchange losses from a foreign loan with the net unrealised exchange loss of
The timber producing firm like many other enterprises bemoaned the shortage of continuous grid power resulting in the use of very expensive alternative sources of energy like diesel generators.
In the outlook the timber producer highlighted that it will continue to focus on maximising value of its biological assets.
Copyright The Herald. Distributed by AllAfrica Global Media (allAfrica.com)., source