LISTED timber producer Border Timbers posted a 125 percent growth in revenue to $7,6 million for the nine months ending March 2023 driven by the consistent quality of the kiln dried timber, resulting in better average selling prices.
The surge in revenue is from a 2022 comparative of $3,4 million.
A high profit before tax of $16,8 million during the period was driven mainly by fair value gain due to biological assets transformation.
Meanwhile, harvesting and sawmilling activities for the nine months were below target, due to frequent breakdowns of the company’s aged sawmilling equipment.
As a result, the company’s lumber sales volume was 12 percent down compared to the comparative period in the prior year. This is however expected to improve after the commissioning of the new sawmilling equipment, which is scheduled for this year.
“Recapitalisation of the sawmills is on course with the installation of new sawmills at Charter and Sheba expected in June 2023 and December 2023 respectively.
“We are excited that our Sheba, Imbeza, Sawerombi and Charter Estates are now FSC (Forest Steward Council) certified. This is expected to bring enhanced adherence to forestry operational practices, a premium on product prices as well as opening new markets, particularly the European market where FSC certification is a prerequisite,” Border Timbers said.
“Recapitalisation remains a key priority, with our replanting programme already on course to reduce the unplanted area to the industry standard of 5 percent in the next three years.”
The company said demand for lumber remains strong in the local market as Border Timbers continues to aggressively expand both the local and export markets.
Poles sales volume for the period was 29 percent lower than the comparative period in the prior year. This was mainly because of timing differences that are usually experienced in the acquisition of tenders, which is asymmetrical.
Improved performance is anticipated in the poles business due to expected demand for the product in Botswana, Zambia and Malawi.
In the outlook, Border Timbers remains focused on cost containment, closely managing operating expenditure and working capital positions more effectively and effic
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