GreenFirst Forest Products Trimmed Net Losses in Q1 2023
Rubber and Wood | 2023-05-16 13:30:58
The cost of sales dropped significantly by 11% from the quarter before to $106.9 million during Q1 2023.
By Paul Ploumis
SEATTLE (Scrap Monster): GreenFirst Forest Products Inc. announced results for the first quarter ended April 1, 2023.
The company reported net loss from continuing operations of $20.2 million or a $0.11 loss per diluted share in Q1 2023. This is upon comparison with net loss of $25.9 million or $0.15 loss per diluted share in the prior quarter.
GreenFirst reported net sales for continuing operations of $99.1 million during Q1 2023, marginally lower by 1% compared with Q4 last year. The decline was primarily attributed to declining lumber prices, which were partially offset by higher sales from paper segment. The cost of sales dropped significantly by 11% from the quarter before to $106.9 million during Q1 2023.
Paul Rivett, interim CEO and executive Chairman of GreenFirst noted that the company is currently focused on optimizing its core assets in Ontario. The recent efforts to improve operational efficiencies have started to yield positive results. The company strengthened its balance sheet during the quarter, Rivett said.
Going forward, the company expects monetary tightening and interest rate rises to continue to put downward pressure on lumber market prices. The tightening lumber supply situation may partially offset the negative impact. It expects the challenges with ongoing tight labour market to persist.
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