Foresta Group Holding (FGH) H2 2024 earnings summary

Executive summary

• Secured a 30-year lease for a flagship manufacturing facility in Kawerau, NZ, with expansion options and regulatory approvals underway.

• Signed major offtake and supply agreements for torrefied wood pellets and pine chemicals, underpinning future revenue.

• Raised capital through multiple placements and convertible notes to fund project development and stabilize cash flow.

• Underwent board changes, including the resignation of the Managing Director and appointment of a new Non-Executive Director.

Financial highlights

• Net loss for FY24 was $9,650,145, compared to a $8,206,788 loss in FY23.

• Revenue from contracts with customers was $15,792; insurance recoveries totaled $1,830,956.

• Negative cash flows from operating activities were $4,073,919, up from $3,461,111 in FY23.

• Cash and cash equivalents at year-end were $185,748, down from $1,439,582.

• Total assets decreased to $3,761,668 from $10,925,508; net assets fell to $1,590,813 from $7,998,007.

Outlook and guidance

• Focus for FY25 is on securing project funding and advancing the Kawerau facility.

• Management remains committed to strategic goals despite ongoing financial challenges.