GreenFirst Forest Products Inc. announced results for the Q3 ended September 28, 2024.
Net sales were $70.8 million in Q3 2024, an increase of approximately 2% compared to Q2 2024. The increase in net sales was due to higher volumes shipped, offset by lower pricing realized for the quarter. The industry continues to face lower demand as housing affordability continues to be significantly impacted by increased mortgage rates. In addition, an oversupply of lumber inventory, despite curtailments in North America, continues to impact pricing. There continues to be low level of field inventory and there were lower takeaways following the first half of the year.
Q3 2024 net income from continuing operations was $14.8 million or $0.08 per share (diluted), compared to net loss of $9.9 million or loss of $0.06 per share (diluted) in Q2 2024.
Adjusted EBITDA for Q3 2024 was positive $15.7 million compared to negative $6.1 million in Q2 2024. Lumber had a negative contribution to Q3 2024 as a result of weak market conditions.
“Q3 2024 was a challenging quarter for GreenFirst and the broader industry. July was our toughest month, primarily due to low pricing, but both August and September saw improvements in pricing. Average Western Base pricing rose from $338/mfbm in July to $428/mfbm early November 2024. In July, due to market conditions and high inventory levels, we implemented targeted curtailments equivalent to six weeks of production. Despite this, our operations ran smoothly for the remainder of the quarter. We also continue to manage cash tightly, including postponing capital expenditures during the third quarter. Aside from the curtailment in July, we achieved good operational performance, breaking production records across multiple sites. In fact, during the third quarter, our efficiency was 4% higher as compared to 2023. Looking ahead, we expect pricing to continue improving for the rest of the year, primarily driven by industry curtailments across North America and reversals in monetary policy by the Bank of Canada and the US Federal Reserve. However, we remain cautious in the short term, and the Company will continue to focus on tightly managing its costs and liquidity. Finally, as previously announced, GreenFirst will continue its strategy of selling non-core assets,” said Joel Fournier, Chief Executive Officer of GreenFirst.
GreenFirst Forest Products is a forest-first business, focused on sustainable forest management and lumber production.
