York Timber’s recovery is set to continue, with the group expecting higher earnings at the halfway stage.
The group said on Friday that it expected an increase in headline earnings per share (HEPS) for the six months to end-December to between 14.22c and 14.45c, compared with 4.67c a year ago.
The group returned to the black in the year to end-June 2024 with a profit of R136.1m after a loss of R312.9m the previous year, thanks to an increase of R254.6m to the biological asset value.
The group operates in the full forestry value chain and has sawmilling operations and a plywood plant.
The Mpumalanga-based company, which was founded in 1916 and listed in 1946, is valued at R986m on the JSE.
The group’s sales channels target wholesale and retail markets in SA, Southern African Development Community (Sadc) and other international markets. It also owns and operates an avocado, macadamia and citrus farm.
For the current half year it expects earnings before interest, taxation, depreciation and amortisation (ebitda) and fair value adjustments on biological assets to be between 914% and 919% higher year on year.
Cash generated from operations is expected to be 687%-692% higher than the previous period’s cash used in operations of R7.8m.
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