Latest Tornator News
Mar 15, 2021
23:12 / March 15, 2021 Photo: CEO Henrik Nieminen Tornator’s FY 2020 net sales were Euro 118.1 million, a change of +11.6%. Timber deliveries were excellent despite the mild weather and labour-market unrest in the early winter. The COVID-19 pandemic did not disrupt the company's operations — the exceptional circumstances even seemed to have a positive effect on activities such as plot sales. A total of 91.7% of net sales, worth Euro 108.3 million, consisted of timber sales income (Euro 101 million, or 95.4%). Operating profit at fair value amounted to Euro 212.4 million and profit for the 2020 was Euro 121.1 million. The fair value of biological assets increased significantly in Finland, which explains the major increase in operating profit. The change in the fair value of biological assets increased operating profit by Euro 121.1 million, and a negative change in the fair value of financial instruments decreased profit by Euro 33.3 million before deferred taxes. Adjusted operating profit decreased in Estonia and Romania. CEO Henrik Nieminen said: “Year 2020 was the best in Tornator’s history. The Group's net sales increased by 11.6% to Euro 118.1 million, and comparable operating profit was a record Euro 91.9 million. Our long-term timber sales agreement with our main customer, Stora Enso, once again proved its strength as the business environment changed suddenly. Operational activities were highly successful in the exceptional circumstances: timber sales volumes were realized as planned and prices were at the level of the comparison year. The fair value of the Group's forests increased by Euro 121 million, and the balance sheet exceeded Euro 2 billion for the first time. The special achievements of the year included the issue of an Euro 350 million Green Bond. The company’s solid operating history and the channels to loan funding markets established over the years became extremely valuable once again. In addition, Tornator concluded an agreement with Stora Enso on the expansion of its forest services business and sold a significant wind power project portfolio to OX2. The coronavirus pandemic created demand for building sites, which supported also Tornator’s plot sales. The company implemented its growth strategy by purchasing almost 12,000 hectares of forest and concluding its first forest lease agreements in Finland.” Tornator is a leading company specialised in sustainable forestry in Europe. It owns forests in Finland, Estonia and Romania.