In the first half of 2022, Precious Woods' sales amounted to Euro 31.3 million, and earnings before interest and taxes (EBIT) amounted to Euro 2.8 million, or 9.1%. Sales growth was 15.2% over the same period of the previous year, and EBIT fell by Euro 0.7 million. This result reflects the difficult economic environment and substantial corresponding cost increases. Working capital increased again by Euro 2.4 million, reaching a high of Euro 22.4 million.
Earnings before interest, tax, depreciation and amortization (EBITDA) amounted to Euro 5.1 million (previous year: Euro 5.5 million), corresponding to a margin of 16.1%.
In May 2022, maintenance work was carried out in the sawmills in Gabon, which meant that industrial activity was reduced during that period. The sawn timber volumes of all sawmills were 10.0% above the previous year. Operations in Brazil developed positively in line with expectations, taking into account the negative exchange rate effect. In Gabon, the result was below expectations, but still satisfactory in light of the intensified infrastructure and logistics challenges.
The Group's net result in the first half-year was Euro –0.3 million (same period of the previous year: Euro 1.4 million). The generated cash flow was below expectations due to the high level of capital tied up in inventory. Inventory that is mostly sold but strongly impacted by the aforementioned challenges. Debt increased by Euro 2.8 million from the end of the previous year, mainly due to the CHF/EUR exchange rate. The outlook and expectations for 2022 as a whole remain positive.
Precious Woods is an international company active in the sustainable management and use of tropical forests. The company’s core activities include sustainable management of tropical forests, timber processing and the trading of FSC-certified timber products.
