SmartPly achieves solid 2021 financial results

9 May 2022

Irish state forestry company Coillte, which operates the SmartPly OSB business in Ireland, has announced extremely strong 2021 financial results.

The strong financial performance in 2021 was driven by “exceptional global demand for sawnwood and strong demand for timber related products” in Coillte’s core markets. 

As a result of the twin drivers of strong demand and higher prices revenue in 2021 reached a record €422m, while EBITDA of €159m was well ahead of 2020. Operating cash levels reached €73m. 

Coillte also said its latest investment at SmartPly’s Waterford OSB plant was progressing, with a €45m upgrade of the drying plant now significantly advanced. The spend will increase capacity at the plant.

“During 2021, end market prices for timber and panel board products reached record levels, driven by high demand in the construction and home improvement sectors,” said Coillte’s chief executive Imelda Hurley. 

“Pricing was also influenced strongly by a global supply and demand imbalance which created a series of supply challenges in key markets. When taken together, these factors resulted in Coillte achieving a record financial performance in 2021.  

However, it referenced the geopolitical situation in Ukraine and Russia as already having wide-ranging impacts.

The impact of the high inflationary environment on Coillte’s cost base is of “significant concern”.

“While there are many unknowns, the company anticipates that its financial returns in 2022 will reflect a material reduction on the record high levels achieved in 2021.”