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Finsilva achieved a record result – turnover and other operating income rose to EUR 43.5. million

Finsilva Oyj
Financial statement release 1.1.–31.12.2023

The first full financial period (1.1.–31.12.2023) of the new strategy period of Finsilva Plc, one of Finland’s largest forest owners, was highly profitable. According to its new strategy, Finsilva is a forest and natural capital company that generates economic, social, and ecological well-being from nature.

Finsilva’s core business of forestry was strong, and in a favourable market and with increased timber prices, turnover rose to over EUR 35 million in 2023.

“We enabled more renewable energy through several significant wind power development contracts. The new natural capital businesses also had a significant financial impact, increasing other operating income to more than EUR 8 million,” says Juha Hakkarainen, CEO of Finsilva.

Overall, Finsilva achieved the best result in its history in 2023: operating profit was EUR 35.5. million and profit for the financial year was EUR 26.3. million.

“What was particularly pleasing about the increase in operating profit was the fact that it came from more than one source. The company has been working for several years to diversify its forestry operations, and this work is starting to bear fruit,” says Olli Haltia, Chairman of the Board of Finsilva, and continues, “The company has managed to live with the times and develop its operations in line with market opportunities.”

Thanks to comprehensive interest rate hedging, higher market interest rates increased Finsilva’s borrowing costs only moderately. Consequently, the increase in market interest rates and cost inflation had only little impact on the company’s cash flows or strategy execution.

All Finsilva’s forests are certified under both the PEFC and FSC® forest certification schemes. During the financial year, Finsilva launched its own biodiversity and climate programme and comprehensively implemented the MetsäGroup Plus forest management model to increase forest biodiversity. In 2023, Finsilva’s investments in forest management were approximately 6.5 million euros.

“From an economic point of view, the forest is our production machinery and the most important part of our natural capital, so it’s important to take good care of its condition,” says Hakkarainen.

During 2023, Finsilva established three private protect areas under the Forest Biodiversity Programme METSO. In addition, Finsilva established one protected area under the Helmi programme. The total area of the protected areas established in 2023 was approximately 200 hectares.

“In line with our strategy, we want to be known as a pioneer and opinion leader in the responsible and diverse use of sustainable forest and natural capital. During the financial period, we actively participated in numerous research and development projects,” says Hakkarainen.

Key figures for 2023 (2022):

  • Turnover 35.4 M€ (27.3 M€)
  • Other operating income 8.2 M€ (0.9 M€)
  • Operating profit 35.5 M€ (21.4 M€)
  • Profit for the financial year 26.3 M€ (14.6 M€)
  • Return on equity 37.6 % (35 %)
  • Equity ratio 33.3 % (29.8 %)

More information and interviews:

Juha Hakkarainen, CEO, Finsilva Oyj
+358 40 087 0867

Olli Haltia, Chairman of the Board, Finsilva Oyj
+358 40 901 0338

The Finnish company Finsilva plc specialises in the responsible and diverse utilisation of forest and natural capital. The company provides economic, social, and ecological wellbeing by developing sustainable forestry and creating profitable business from renewable energy and environmental compensation. Finsilva owns roughly 130,000 hectares of well-managed forest, most of which is located in Southern and Central Finland. Finsilva is one of the leading private and independent forest owners in Europe. It is owned by the forest funds of Dasos, and Metsärahasto II Ky (Ilmarinen).