Medite SmartPly owner reports strong 2022 profits but predicts more challenging 2023

12 June 2023

The owner of the Medite SmartPly Irish wood-based panels business has reported strong annual profits for 2022 but warned on the more challenging environment this year.

Irish state forester Coillte, which owns the Medite MDF facility in Clonmel and SmartPly OSB operation in Waterford, reported strong overall EBITDA of €157m and pperating profit of €119m from revenues of €479m (relating to all its activities).

Earnings were broadly in line with the record level achieved in 2021 while operating profit was lower, primarily due to increased operating costs. Growth in the construction sector meant that demand for product was strong in the first half of 2022, however, demand moderated significantly in the second half of the year.  

This combined with relatively solid pricing resulted in an overall strong financial performance in 2022.

Coillte also said its 10-year investment programme at the OSB manufacturing facility in Waterford culminated in the successful commissioning of the €45m upgrade of the drying, energy and screening system. 

“This investment will help ensure the competitiveness of what is a key forestry sector asset,” said Coillte. 

Coillte is expecting a more challenging 2023 as inflationary costs and higher interest rates impact the sector and the business.