GreenFirst Forest Products reports Q1 results

May 24, 2024
Source:
GFF/Fordaq
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GreenFirst Forest Products Inc. announced results for the Q1 ended March 30, 2024.

Q1 2024 net loss from continuing operations was $13.4 million or $0.08 per share (diluted), compared to net loss of $21.6 million or loss of $0.12 per share (diluted) in Q4 2023.

Adjusted EBITDA for Q1 2024 was negative $3.5 million compared to negative $18.0 million in Q4 2023. In Q1 2024, this represents a positive contribution from the Company’s lumber operations and a negative contribution from the paper operations and overhead.

Average lumber prices for Q1 2024 were higher than Q4 2023, with an average selling price of $626/mfbm compared to $601/mfbm in Q4 2023. There was strong pricing momentum during Q1 2024, however, toward the tail end of the quarter, pricing started to be impacted due to lower housing affordability with increasing mortgage rates. With recent inflation figures coming in higher than expectations, there is growing sentiment that the US Federal Reserve and Bank of Canada may be hesitant to cut interest rates in the very near future.

“We initially saw some positive momentum in lumber pricing at the start of the first quarter; however, this positive trend reversed at the end of the quarter resulting in curtailments by some of our competitors in the lumber industry,” said Paul Rivett, GreenFirst’s Executive Chair. “In these tough times, we are thankful to be operating in a province that is business friendly and supportive of lumber producers and the forest products ecosystem. That said, Joel and the entire GreenFirst lumber team’s relentless focus on efficiency gains continues to pay dividends with new operating records being broken in the quarter. On the paper side, we faced some disruptions caused by external events but pricing erosion has led to deeper losses. We are exploring ways to reduce the negative financial impact of the paper mill on our overall results.”