The Supervisory Board approved the financial results of RMK and AS Eesti Metsataim  06.03

At the meeting yesterday evening, the Supervisory Board of RMK confirmed RMK’s audited annual report for 2014, according to which the company earned a profit of EUR 44.6 million and the total turnover amounted to EUR 163.5 million. RMK’s turnover increased by 5% and profit by 25% in the year

In 2014, RMK sold 3.2 million cubic metres of timber which equals the amount sold the year before. According to Aigar Kallas, Chairman of the Management Board of RMK, the increase in profit was mainly due to an increase in the proportion of logs in the sales volume. This, in turn, was caused by the improved quality of forestry works and the improved capability of the local processing industry to process thinner timber. In 2014, logs accounted for 45%, pulpwood 36%, firewood 15% and wood chips 4% of the total sales volume of RMK.

RMK estimates its turnover for 2015 to be EUR 169.3 million and net profit to be EUR 35.2 million. This year, the amount of trees felled is planned to be increased to some extent, but as the increase will be made at the expense of managing the forest land formally added to state ownership and unmaintained for years, the proportion of low-quality timber in sales volume will increase, thus decreasing profit.

Yesterday, the Supervisory Board of RMK also confirmed the annual report of AS Eesti Metsataim for last year. The company, almost entirely owned by RMK, earned EUR 272,000 of profit and its turnover amounted to EUR 1.3 million. The turnover of AS Eesti Metsataim increased by 24% and profit decreased by 30% in the year. The main reason for the decrease in profit was an increase in production volumes, the result of which will be achieved in two years based on the production cycle length of forest plants. RMK became the exclusive owner of the company this year in February; before that, Estonia owned 69.9% and the Finnish state forest management 30.1% of the company.