The Czech state company Lesy \u010cesk\u00e9 republiky (L\u010cR) in the first three quarters of the year multiplied its gross profit year-on-year to 7.39 billion crowns (EUR 303 million) from last year's 2.9 billion crowns (EUR 119 million) . The main reason for the increase in profit was the increase in wood prices. Sales of L\u010cR increased by 34 percent to 14.5 billion crowns (EUR 596 million) from 10.8 billion crowns (EUR 444 million) a year ago, said company spokesperson Eva Jouklov\u00e1. Forests of the Czech Republic manage almost half of the forests in the Czech Republic. Two weeks ago, the company sent an extraordinary levy of 3.81 billion crowns (EUR 156 million) to the state budget.<\/p>\n
\" A higher economic result is related to greater monetization of firewood. Sales increased mainly due to higher market prices of all types of raw wood in response to this year's geopolitical situation reflected in inflationary pressures,\" said the spokeswoman. The company also has higher revenues thanks to greater sales of wood to small and medium-sized processors in the regions. \"It is also reflected in the economic result partial cost savings in forest regeneration related to a higher proportion of natural regeneration,\" she added.<\/p>\n
The company's sales rose significantly by September despite logging falling by a fifth year-on-year to 7.4 million cubic meters. Lower extractions are due to the fading bark beetle calamity and the company's gradual return to normal management according to forest management plans. For the entire year 2021, timber harvesting in state forests fell by a fifth to 11.4 million cubic meters, this year it should fall to 9.5 million cubic meters of wood.<\/p>\n
The company intends to use the profits primarily to restore forests after the bark beetle disaster and create reserves for cultivation work , to restore forest roads and repair property. The company estimates that forest restoration and road repairs after the disaster will require tens of billions of crowns in the coming years.<\/p>\n
Last year Lesy \u010cR increased its net profit to 2.74 billion crowns (EUR 112 million) from 44 million crowns (1.9 million) in 2020. Also last year, the main reason for the increase in profit was the increase in wood prices. The company also received subsidies from the state for the restoration of forests destroyed by bark beetles. The amount of last year's profit of Lesy \u010cR almost returned to the level of the last year before the bark beetle disaster. Back then in 2017, they made a net profit of 3.08 billion crowns (EUR 123 million).<\/p>\n
Between 2018 and 2020, L\u010cR's profitability was fundamentally affected by the bark beetle disaster associated with the fall in wood prices. In 2019, the company suffered a loss of 790 million crowns (EUR 32 million), and in 2020 it maintained a moderate profit of 44 million crowns (EUR 1.9 million) only thanks to the acceptance of state compensation for the reduction of wood prices due to the calamity in the amount of 2.3 billion crowns (EUR 94 million).<\/p>","protected":false},"excerpt":{"rendered":"
The Czech state company Lesy \u010cesk\u00e9 republiky (L\u010cR) in the first three quarters of the year multiplied its gross profit year-on-year to 7.39 billion crowns (EUR 303 million) from last year’s 2.9 billion crowns (EUR 119 million) . The main … Continue reading