The economic output of Ireland’s forestry sector has the potential to double to almost €5bn over the next 10 years, according to Coillte chief executive Fergal Leamy. The Coillte boss said that Ireland’s forestry sector currently contributes €2.3bn to the Irish economy every year but added that the sector had the potential to double in size over the coming decade.

However, Leamy warned that Brexit poses significant threats to the growth of the Irish forestry sector, with over 70% of Irish timber products exported to the UK. Leamy made the comments as Coillte announced financial results for 2017.

Record sales

The semi-state body reported record sales of just under €300m, which was up 4% year on year. Operating cash for the year doubled to €30m. Once large land transactions are excluded, earnings (EBITDA) increased 6% in the year to €85.2m.

Operating profits fell by more than a quarter (-26%) in 2017 to €48.3m, as profit margins narrowed from 23% to just over 16% last year. Coillte said it was increasing its dividend payout to its single shareholder (the state) by 29% for 2017 to €8m.

Commenting on the results, Leamy said 2017 marked the third year of Coillte’s transformation programme and had reduced its reliance on large-scale land transactions to turn a profit.

“This is a crucial year (2018) for Coillte as we expect to see a steep change in earnings following an intense phase of organisational restructuring and investment,” said Leamy.

Read more

Irish timber industry 'uniquely exposed' to Brexit

Coillte targets fivefold return with windfarm sales