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Drop in pellet sales among Vapo Group’s halfway results

Sawn timber and pellet provider Vapo Group posted a drop in overall turnover for the first half of 2012.

Its turnover for the January – June period dropped from €418 million ($523.4 million) to €391.3 million compared to the same time last year. The company puts this figure down to a warmer spring season and lower electricity prices which aided a drop in energy peat turnover of €15.6 million.

Overall group operating profit was €32.3 million (8.3% of turnover), which included a €5.4 million profit from the sales of some fixed assets and some cost savings achieved through various programmes.

The Vapo Wood Products side of the group is split into Vapo Timber and Vapo Pellets. The combined turnover of these in the January – June period was €116.3 million and the operating result was down €7.4 million.

The turnover of Vapo Pellets was €57.6 million and the operating result was down by €3 million. However turnover does include the one-off sale of 17,000 tonnes of Danish pellet stocks in the second quarter.