State forestry company, Coillte, has reported a drop in profits last year, due in the main to increased operating costs.
Operating profit before exceptionals and revaluation gains came in at €116.8m, down from €124.4 a year earlier.
Group turnover was up 13% at €478.8m largely driven by increased end market pricing, the company said.
Operating costs increased by 17% compared to 2021, by €52.7m.
The company’s board has recommended a final dividend of €7.7m, bringing the total proposed dividend for the year to €27.7m.
Coillte said the growth in the construction sector meant demand for its products was strong in the first half of last year.
But it moderated significantly in the second half of the year.
“Coillte delivered another strong financial performance in 2022,” said Chair of Coillte, Bernie Gray.
“During the first half of the year, pricing, driven by a mix of demand and supply constraints in international wood and timber related product markets, was strong, albeit back from the highs experienced the previous year.”
The company said it is expecting a more challenging year this year due to rising costs because of inflationary pressure, as well as higher interest rates.