Interim report Jan-Sept. 2022
- Book value of fixed assets amounts to TEUR 37,817 (25,815)
- Equity amounts to EUR 0.928 (0.841) per share
- Earnings per share EUR 0.059 (0.172)
- Property holdings amount to 7,417 (5,851) hectares
- Timber volume is estimated at 1,104,255 (710,740) cubic meters
- Net sales TEUR 1,943 (670)
- Operating profit TEUR 1.174 (280)
- Change in value, forest TEUR 836 (5,620)
- Net profit TEUR 2,181 (5,716)
Latvian Forest Company
Latvian Forest Company AB (publ.) is a Swedish listed company that acquires and manages forest properties on advantageously valued forest in Latvia. The three main foundations of the business are, in addition to forest being a sought-after real asset that grows by its own power,
- an expected increase in the price levels of Latvian forest and agricultural properties.
- to create added value through active forest management.
- to create value by building up a larger property portfolio.
The expansion is financed by carrying out new share issues in stages as properties are acquired and the business develops. Through Latvian Forest Company, shareholders become co-owners of many properties instead of one individual, which provides a good spread of risk. The activities carried out in ongoing forestry create the turnover needed to cover the company's costs over time and, in the long term, generate a surplus.
Latvian Forest Company AB has Euro as its accounting currency and all reporting takes place in Euro. Trading in the share on Spotlight Stock Market takes place in Swedish kronor.
Status & property holdings
Investments in forest properties have been made continuously and the holdings at the end of the period amounted to a total of 7,417 (5,851) hectares. Of these, 6,099 (4,318) hectares were forest and 1,319 (1,534) other land whereof 866 (1,105) hectares agricultural land. At the same time, the total growing stock was estimated at about 1,105,000 (711,000) cubic meters after felling, property purchases and sales. Of the total of 7,417 hectares and 1,105,000 cubic meters of growing stock, the company owned 5,964 hectares with 786.000 cubic meters of growing stock in Latvia and 1,453 hectares with 318,000 cubic meters in Lithuania at the end of the third quarter.
On the total of 6,099 hectares forest land that the company owned at the end of this period, the growing stock is estimated at 1,105,000 cubic meters. The management estimates that 310,000 cubic meters can be felled immediately. The company intends to fell 465,000 cubic meters within the next 10 years. The management estimates that there are 181 cubic meters of growing forest per hectare. Almost 71% of the company holdings consist of land types corresponding to site fertility classes IA (G36), I (G32) and II (G28). Only 1.2% of the company holdings have management measures prohibited due to nature conservation restrictions. Almost 78% of the growing stock consists of the three most important industrial wood species: birch, pine, and spruce.
(Map of existing property holdings)
During the third quarter, a total of approximately TEUR 953 was invested in 12 individual properties of 194 hectares with a growing stock of approximately 28,154 cubic meters. The average acquisition price was EUR 33/m3 of growing stock. The average timber stock was approximately 209 cubic meters per hectare of forest land. The company management has assessed that there are still favorable conditions for the acquisition of individual properties since some foreign property owners consider it favorable to leave the Latvian market.
Felling and clearing
During the third quarter, the company has felled 9,930 cubic meters. The average felling price was EUR 48 per cubic meter with an income equivalent to TEUR 476. The company has cleared 10 hectares and carried out planting on 5 hectares during the third quarter. A total of 38 hectares have been cleared and 80,000 spruce seedlings planted on 41 hectares during the nine months
(The company has purchased oak, spruce, and birch plantations in Lithuania)
Sales and earnings
Net sales in the third quarter amounted to TEUR 493.0 (241.3) and relate to income from felling volume, i.e., the sale of root items, and income from agricultural land. Total net sales for the first nine months have been TEUR 1.943.1 (669.8). Operating expenses have continued to develop satisfactorily even considering the high inflation rate. An increase in external costs is explained by costs related to the preparation and analysis of possible new acquisition opportunities. Operating profit was TEUR 1,173.7 (280.1) for the nine months period and TEUR 216.1 (114) for the third quarter. Total profit for the year was TEUR 2,181,1 (5,716).
The estimated value of fixed assets totaled TEUR 37,817.6 (25,815.4). The company's board of directors has decided to change the discount rate to 7.25% from the previously adopted 6.75%. The decision has been made in the light of the board's decision to adjust the discount rate to more market-based return requirements among companies that invest in real assets. As a result, assets are revalued at a more current market value. Also, the increase in value can be attributed to the company's acquisition of new properties, as well as an estimate of the average long-term price level of sawlogs and pulpwood. The company management believes that the sharp rise in prices caused by the high inflation rate at the beginning of the year should be reflected in the long-term price level that the company uses when developing the present value of biological assets. The fair value of growing forest has been calculated on the assets that were in the company as per September 30, 2022. The value is calculated by discounting a 100-year series of estimated felling volumes/sales revenue and forest management costs at a discount rate of 7.25 % (6.25%).
Otherwise, the result is affected by normal costs for clearing, property-related costs such as new property measurements, inventories and stamping of stocks before felling, as well as certain costs in connection with felling.
External costs largely consist of purchased services related to forest management, other consulting services such as accounting, auditing, legal advice, costs for travel, rent and transport, etc. Variable costs for purchase commissions have been recorded to some extent as part of the acquisition costs of the individual properties and in these cases do not affect the result. Other variable compensations for clearing are recorded under raw materials and supplies (previous cost of goods sold).
Timber and forest property market
The company management follows how the market develops for sawn timber and pulpwood. The global timber market has been very volatile in recent years and especially in 2022. Trading in timber on the NASDAQ stock exchange began at about USD 1,329/LBS in January 2022. By the end of the third quarter, the price has stabilized around USD 410/LBS. This corresponds to the price level of timber on the NASDAQ before the corona pandemic.
The same trends can also be observed on the Latvian and Lithuanian markets with the purchase price for softwood timber 155 EUR/m3 in mid-June with a rapid decline to the equivalent of 100 EUR/m3 in early September. This outlook suggests that the prices of softwood timber will be further adjusted downwards.
The development of the Latvian pulpwood market has been incredible. An example, while the purchase price for one cubic meter of hardwood pulpwood was about EUR 58,28 in January 2022, by the end of September it had risen to EUR 125 per cubic meter.
Demand for birch veneer logs, and therefore also price, has reached record levels equivalent to EUR 232 per cubic meter of premium class range at the beginning of September 2022. However, it can be predicted that these record prices will not be long-lasting.
The geopolitical concern has been most reflected in the price level of energy wood, including raw material for wood chips. When in 2021 the price of branches was around 8 EUR/cubic meter, they have risen to the peak figure of 25 EUR per cubic meter. However, this may be affected by a mild winter that leads to sharp correction in the price level.
Considering all above mentioned, the prices of forest properties has been affected and sellers are beginning to expect more aggressive valuations for properties. This can be observed both in Latvia and Lithuania. However, LFC have succeeded in acquiring new properties, as the company's management actively uses its experience and knowledge to identify and acquire forest properties at a favorable price.
Financing
During the third quarter, no loans were raised, and no new issues were carried out.
Financing strategy
Following comments from and probing among shareholders and potential investors, the Board of Directors has decided that future financing in the form of new share issues will primarily take place within the framework of new share issues with preference for existing shareholders. However, this does not prevent that directed issues may be carried out, for example, in the case of acquisitions of property portfolios or in special situations where a directed issue may be required. The objective is that existing shareholders should not be disadvantaged if a directed issue is carried out.
Share
At the end of the period, the share capital amounted to EUR 4,106,436, divided into 80,000 Class-A shares and 36,583,521 Class-B shares. Class-A shares represent ten votes and Class-B shares one vote each. Each share has a quota value of 0.112 Euro in share capital. According to the latest data obtained by the company, the five largest shareholders in terms of voting rights control 67.6% of the capital and 67.2% of the votes.
Significant events after the end of the period
The property holdings at the time of this report amount to 7,610 hectares. At the same time, the total growing stock was estimated at about 1,125,400 cubic meters after completed felling, property purchases and sales.
(The felling of 12,000 m3 in Nica has been completed in Q3)
Next report
The year-end report for 2022 is scheduled to be published on February 20, 2023.
About this report
This report has not been subject to special review by the company's auditor.
Stockholm, 2022-11-24
Board
For further information, please contact:
Aleksandrs Tralmaks, CEO
+37129203972
info@latvianforest.se
Or visit our website: www.latvianforest.se
Latvian Forest Company offentliggör emissionsmemorandum
10.04.2024
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Latvian Forest Company genomför företrädesemission om 27,3 Mkr för fortsatt expansion
02.04.2024
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Ändrat datum för offentliggörande av bokslutskommuniké 2023
19.02.2024
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Interim report Jan-Sept. 2023
22.11.2023
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FLAGGING MESSAGE Galjaden Invest AB has reduced its holding in Latvian Forest Company AB
20.09.2023
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Interim report Jan-June 2023
25.08.2023
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COMMUNIQUÉ FROM THE ANNUAL GENERAL MEETING
26.06.2023
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NOTICE LFC ANNUAL GENERAL MEETING 2023 - MAY 30, 2023
30.05.2023
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Interim report January-March 2023
24.05.2023
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THE BUYER WITH WHOM LATVIAN FOREST COMPANY AB HAS NEGOTIATED THE SALE OF ITS TWO LATVIAN SUBSIDIARIES HAS ANNOUNCED THAT IT DOES NOT INTEND TO COMPLETE THE CONTEMPLATED TRANSACTION.
29.04.2023
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LATVIAN FOREST COMPANY CONTINUES WORK TO COMPLETE THE SALE OF ITS SUBSIDIARIES IN LATVIA TO SWEDEN BASED, WELL ESTABLISHED COMPANY.
17.04.2023
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Changed date for Year-end report 2022
20.02.2023
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LATVIAN FOREST COMPANY ENTERS INTO LETTER OF INTENT WITH SWEDEN BASED, WELL ESTABLISHED COMPANY REGARDING THE SALE OF ITS SUBSIDIARIES IN LATVIA
15.02.2023
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New date for Interim Report January-September 2022
14.11.2022
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Interim report Jan-June 2022
22.08.2022
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COMMUNICATION FROM ANNUAL GENERAL MEETING
30.06.2022
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Interim Report January - March 2022
27.05.2022
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Last day for trading in BTA B is 2022-03-11
09.03.2022
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CHANGED DATE FOR YEAR-END REPORT 2021
18.02.2022
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LATVIAN FOREST COMPANY'S PREMIUM ISSUE SUBSCRIBED
01.02.2022
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Correction: Carry out a rights issue of SEK 25 million for continued expansion
07.01.2022
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LATVIAN FOREST COMPANY AB (PUBL.) COMPLETES PREPARATION ISSUE OF SEK 25 MILLION FOR CONTINUED EXPANSION
07.01.2022
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LATVIAN FOREST COMPANY AB (PUBL.) HAS FINISHED THE BUSINESS REGARDING THE PURCHASE OF ALL SHARES OF UAB SILUONA.
02.12.2021
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CHANGED DATE FOR INTERIM REPORT JAN-SEPT 2021
12.11.2021
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LATVIAN FOREST COMPANY AB (PUBL.) HAS SIGNED AN AGREEMENT REGARDING THE PURCHASE OF ALL SHARES OF A LITHUANIAN COMPANY OWNING 1,338 HECTARES OF LAND WITH 301,000 m³ OF LUMBER.
01.11.2021
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Interim report Jan-June 2021
30.08.2021
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CORRECTION: UPDATE IN PREVIOUS PRESS RELEASE "CHANGED DATE FOR INTERIM REPORT JANUARY-JUNE 2021" REGARDING MAR CLASSIFICATION.
23.08.2021
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ANNUAL REPORT AND CONSOLIDATED FINANCIAL STATEMENTS FOR LATVIAN FOREST COMPANY AKTIEBOLAG 2020
03.08.2021
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COMMUNICATION FROM ANNUAL GENERAL MEETING
30.06.2021
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Interim report January-March 2021
06.06.2021
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NOTICE TO ATTEND THE ANNUAL GENERAL MEETING OF LATVIAN FOREST COMPANY AB (PUBL)
31.05.2021
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Latvian Forest Companys företrädesemission registrerad
27.05.2021
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Latvian Forest Company's rights issue oversubscribed
07.05.2021
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LATVIAN FOREST COMPANY PUBLISHES PROSPECTUS
22.04.2021
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Latvian Forest Company provide a rights issue of approximately 78.2 MSEK for continued expansion
12.04.2021
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Changed release date for Interim Report Jan-Mar 2021
12.04.2021
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Interim report Jan-Sept. 2020
30.11.2020
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AMENDED DATE OF INTERIM REPORT JAN-SEPT. 2020
19.11.2020
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LATVIAN FOREST COMPANY AB (PUBL.) HAS COMPLETED THE TRANSACTION REGARDING THE PURCHASE OF ALL SHARES IN LATFOLDE AB
30.10.2020
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LATVIAN FOREST COMPANY AB BORROWS 1.1 MEUR FROM SWEDBANK
23.10.2020
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SUPPLEMENT - LATVIAN FOREST COMPANY AB (PUBL.) SIGNS CONDITIONAL PURCHASE AGREEMENT REGARDING THE PURCHASE OF ALL SHARES OF LATFOLDE AB
18.09.2020
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LATVIAN FOREST COMPANY AB (PUBL.) SIGNS CONDITIONAL PURCHASE AGREEMENT REGARDING THE PURCHASE OF ALL SHARES OF LATFOLDE AB
18.09.2020
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Interim report Jan-June 2020
26.08.2020
Interim report Jan-June 2020
- Book value of fixed assets 12,264.8 (0) TEUR
- Equity amounts to 0.669 (1.154) EUR per share
- Earnings per share 0.024 (0.474) EUR
- Property holdings amount to 4,324* (0) hectares
- Timber volume estimated at 500,000* (0) cubic meters
- Net sales 103.7 (15.6) TEUR
- Operating profit -498.6 (0) TEUR
- Change in value, forest 1,080.7(0) TEUR
- Net profit 498.3 (9,726.4) (0) TEUR
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LATVIAN FOREST COMPANY AB HAS SOLD 195.7 HECTARES OF FARMLAND AND A 2.3 HECTARE FARM.
20.07.2020
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COMMUNIQUÉ FROM THE ANNUAL GENERAL MEETING
29.06.2020
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NOTICE OF ANNUAL GENERAL MEETING OF LATVIAN FOREST COMPANY AB (PUBL)
29.06.2020
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Interim report Jan-Mar 2020
25.05.2020
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Arbitration Institute has adjudicated on claims from former CEO Fredrik Zetterström
20.05.2020
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Regarding the company's former CEO Fredrik Zetterström, the Arbitration is expected to be on May 20, 2020.
28.04.2020
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Year- end report 2019
20.02.2020
Period January-December 2019
- Book value of fixed assets 8,660 (24,574) TEUR
- Equity amounts to 0,665 (1,145) EUR per share)
- Property holdings amount to 3,816 (10,452) hectares
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MINUTES HELD AT THE ANNUAL GENERAL MEETING OF LATVIAN FOREST COMPANY AB (PUBL)
20.12.2019
Minutes kept at the Annual General Meeting of Latvian Forest Company AB (publ), org. 556789-0495, at 10.00, Monday, December 16, 2019 in Stockholm.
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INTERIM REPORT JAN-SEP 2019
22.11.2019
- Equity amounts to EUR 0.604 (1,125) per share
- Profit after financial items 9,523.4 (2,020.5) TEUR
- Earnings per share EUR 0.464 (0.099)
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LATVIAN FOREST COMPANY AB HAS SIGNED A PURCHASE AGREEMENT FOR THE ACQUISITION OF 3,460 HECTARES OF FOREST AND AGRICULTURAL LAND IN LATVIA.
12.11.2019
Parts of the acquisition have already been taken up and the remaining shall be taken later.
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NOTICE OF EXTRAORDINARY GENERAL MEETING LATVIAN FOREST COMPANY AB (PUBL)
12.11.2019
Shareholders wishing to participate in the Meeting shall be included in the share register kept by Euroclear Sweden AB ("VPC) and report their participation no later than Wednesday December 11, 2019.
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Former CEO and Board member Fredrik Zetterström has called for arbitration against Latvian Forest Company AB.
08.10.2019
LFC informs that its past CEO and board member Fredrik Zetterström has called for arbitration against Latvian Forest Company AB regarding profit sharing corresponding to EUR 378,500.
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INTERIM REPORT JAN-JUN 2019
23.08.2019
All shares in the subsidiaries have been sold, leading to a surplus of 10,803 TEUR
- Equity amounts to EUR 1,154 (0.676) per share
- Profit after financial items 9,726.4 (18.3) TEUR
- Earnings per share EUR 0.474 (0.001)
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Record day to receive dividends
01.07.2019
Today, Monday, July 1, 2019, is the record day to receive a dividend. According to a resolution of the Annual General Meeting dividend to the shareholders shall be paid EUR 0.54 per share or a total of EUR 11 075 973.
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Annual Report and Consolidated Financial Statements for Latvian Forest Company Aktiebolag (publ)
03.06.2019
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INTERIM REPORT JAN-MAR 2019
24.05.2019
Book value of fixed assets amounts to 24,733.2 (21,924.3) TEUR
- Equity amounts to 1,117 EUR (1,034) per share
- Earnings per share -0.028 (0.008) EUR
- Property holdings amount to 10,614 (9,665) hectares
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NOTICE OF THE ANNUAL GENERAL MEETING OF LATVIAN FOREST COMPANY AB (PUBL)
23.05.2019
Notice of the Annual General Meeting of Latvian Forest Company AB (publ).
Shareholders of Latvian Forest Company AB (publ), org. No. 556789-0495, (the "Company") is hereby invited to the Annual General Meeting on Thursday, June 27, 2019, at 10:00 a.m. in Galjaden Fastigheter's premises on Linnégatan 18 in Stockholm.
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Chairman of the Board Ted Alvenius leaves his post as board member and chairman of Latvian Forest Company AB with immediate effect.
20.05.2019
LFC informs that Chairman of the Board, Ted Alvenius, is of a different opinion than the remaining Board of Directors regarding a transaction involving compensation for value increase in connection with the sale of all shares in the operating subsidiaries.
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Disclosure Notice
16.04.2019
Galjaden Invest AB has increased its holding in Latvian Forest Company AB to 20.03%.
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Press Release - sale of all shares in SIA Latvijas mezu kompanija and Baltic Forest IV SIA.
08.04.2019
Latvian Forest Company has, in accordance with a resolution at the Extraordinary General Meeting on March 27, 2019, completed the sale of all shares in SIA Latvijas mezu kompanija and Baltic Forest IV SIA.
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Disclosure Notice
29.03.2019
Nils Robert Persson has increased his holding in Latvian Forest Company AB.
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NOTICE FROM EXTRAORDINARY ANNUAL GENERAL MEETING
27.03.2019
Latvian Forest Company AB (publ) held the Extraordinary Annual General Meeting on March 27, 2019. The meeting resolved on the sale of all shares in the operating subsidiaries SIA Latvijas Mezu Kompaniju and Baltic Forest IV SIA to SCA Mezs Latvija, SIA
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Summons to Extraordinary General Meeting of shareholders in Latvian Forest Company AB (publ)
13.03.2019
The shareholders of Latvian Forest Company AB (publ), Reg. No. 556789-0495 ("The Company") are hereby summoned to the Extraordinary General Meeting of shareholders to be held on Wednesday, March 27, 2019 at 10.00 in Galjaden Fastigheter premises on Linnégatan 18, Stockholm.
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Latvian Forest Company undertecknar aktieöverlåtelseavtal med SCA Mezs Latvija
08.03.2019
LATVIAN FOREST COMPANY SIGNS SHARE TRANSFER AGREEMENT WITH SCA MEZS LATVIA
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Bokslutskommuniké 2018
22.02.2019
- Bokfört värde på mark- och skogstillgångar uppgår till 24.574 (21.323)TEUR
- Eget kapital uppgår till 1,145 (1,027) EUR per aktie
- Fastighetsinnehaven uppgår till 10.452 (9.599) hektar
- Virkesvolymen uppskattas till ca 1.015.000 (995.160) kubikmeter
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Latvian Forest Company signs letter of intent with Svenska Cellulosa Aktiebolaget SCA with a view of selling the entire share capital of all its operating subsidiaries
04.02.2019
Latvian Forest Company AB signs letter of intent with Svenska Cellulosa Aktiebolaget SCA with a view of selling the company’s operations by way of sale of all shares in the operating subsidiaries SIA Latvijas mezu kompanija and Baltic Forest IV, SIA. The total sale price is estimated to 26 000 000 Euro.
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Interim Report January - September 2018
23.11.2018
- Book value on land and forest assets of 23.840 (21.062) TEUR
- Owners’ Equity per share was 1,125 (0,979) EUR
- Property holdings of 10.357 (9.416) hectares
- Timber volume was 1.016.600 (960.000) cubic meter
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Interim Report January - June 2018
23.08.2018
- Book value on land and forest assets of 22.137 (20.850) TEUR
- Owners’ Equity per share was 1,047 (1,068) EUR
- Property holdings of 9.877 (9.368) hectare
- Timber volume was 1.034.000 (940.000) cubic meter
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Come follow us on Instagram!
17.08.2018
Come follow us on Instagram
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European Foresters' Orienteering Championships 2018
01.08.2018
We at Latvian Forest Company are proud supporters of orienteering in Latvia.
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Interim Report January - March 2018
24.05.2018
- Book value on land and forest assets of 21.924,3 (20.829,8) TEUR
- Owners’ Equity per share was 1,034 (1,06) EUR
- Earnings per share 0,008 (0,0039) EUR
- Property holdings of 9.665 (9.368) hectare
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Interim Report January - March 2017
22.05.2017
- Book value on land and forest assets of 20.829,8 (19.228) TEUR
- Owners’ Equity per share was 1,06 (1,03) EUR
- Earnings per share was 0,0039 EUR
- Property holdings of 9.368 (8.590) hectare
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Bronsstädet AB largest shareholder
23.09.2014
Bronsstädet AB (556612-1124) has purchased 1.878.616 B-shares in Latvian Forest Company AB (publ). The ownership, after purchases, corresponds to 14.81 percent of capital and 14.01 percent of votes which makes Bronsstädet AB the largest shareholder in Latvian Forest Co.
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Acquisitions will be completed
04.03.2014
Following the completion of its due diligence analyses, the Latvian Forest Company AB has decided to complete the previously announced acquisitions.
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