Turnover for the group rose 1% to €262.2m.

The forestry division, a large supplier to Irish sawmills, had a "satisfactory" financial performance during the year, with prices for standing and harvested timber performing well.

"Demand for sawn timber in the UK was strong in the first half of 2012 and this was reflected in demand from Irish sawmills," said acting group chief executive Gerry Britchfield. "The second half of the year was significantly more challenging with the UK market once again dipping into recession."

Coillte Panel Products recorded a turnover of €154m.

"In our panel products business, while prices were relatively stable, they were lower than anticipated and this remains a key issue for us in 2013," he added.

However, the division, comprising SmartPly OSB and Medite MDF, exported to a record 32 countries last year and 90% of turnover is now derived from export sales.

Mr Britchfield said the Coillte board had approved plans to invest in the SmartPly OSB production plant at Waterford.

"While the economic environment continues to be challenging across Europe, I am confident of another strong performance in 2013 and that Coillte will continue to progress as a company that is recognised as a major player in the wood fibre industry," he said.