York Timber is back in the black


York Timber is back in the black


Published Date: 2021-03-31 | Source: Stephen Gunnion | Author: Stephen Gunnion

York Timber is back in the black

The timber company generated more cash from its operations as it managed its stock levels more efficiently.

York Timber has swung to a first-half profit after generating more cash from its operations despite the lingering impact of Covid-19. It says demand for lumber and plywood remained strong in the six months to end December, with a big increase in plywood sales making up for a smaller decline in lumber sales.

The forestry company said lockdown regulations introduced to mitigate the spread of Covid-19 compromised the production output of its processing facilities over the period. However, its forestry division delivered a solid set of interim results, supported by its Highveld operations. Its Wholesale division contributed significantly to stronger cash generation over the period as marginal operations were closed and it focused on cost-effective delivery and servicing of customers.

Revenue for the six months to end-December rose 2% to R889-million and earnings before interest, tax, depreciation, and amortisation (Ebitda) increased by R99-million to R173-million. Earnings per share (EPS) improved to 13c from a 19c loss a year earlier, while headline EPS also came in at 13c, from a 20c loss previously. The company generated R135-million more cash from its operations as it managed its stock levels more efficiently, with stock reducing by R153-million. It cut its debt by R92-million.

Over the period, York also started to establish its first high-yield soft citrus crop, aligning itself with the leading companies in the sector to assist with choosing varieties, technical expertise and marketing of fruit.

The company's shares fell 0.9% to R2.34 yesterday.


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