In 2021, Precious Woods achieved net sales of Euro 54.3 million, an increase of 17.6% over the previous year (Euro 46.2 million). Currency effects amounted to -1.4%, volumes increased by 5.6%, and shifts in the price/product mix impacted sales by 3.1%. Newly added is the revenue from electricity sales in Brazil of Euro 1.7 million.
Earnings before interest, taxes, depreciation and amortization (EBITDA) amounted to Euro 15.1 million, an increase of Euro 9.3 million over the previous year (Euro 5.8 million). This corresponds to an EBITDA margin of 27.7% (previous year: 12.5%).
Earnings before interest and taxes (EBIT) amounted to Euro 10.7 million, Euro 8.8 million higher than the previous year (Euro 1.9 million). The net result was Euro 4.7 million (previous year: Euro -2.2 million). The EBITDA and EBIT figures include increases in the valuation of biomass in the amounts of Euro 4.1 million and Euro 0.9 million, respectively, in 2020.
In Brazil, the harvest volume for logs was 160 300 m3, 15% lower than in the previous year. The sawmill processed 162 400 m3 of wood, 1.3% less than in the previous year. Yield increased again. This resulted in 3.5 % higher sawn timber production, totalling 39 600 m3 (previous year: 38 300 m3).
In Gabon, the harvest volume in 2021 was 233 700 m3, a decline of 6.6 % from the previous year (250 100 m3). The sawmills in Bambidie processed 149 000 m3 of logs, an increase of 14.7%. Sawn timber production amounted to 53 500 m3 (previous year: 44 600 m3).
Outlook for 2022
The operational progress achieved in recent years has laid the foundation for the further development of Precious Woods. The strategic objective includes expanding our managed forest areas in Brazil and Gabon. In 2022 the Company expects increased profitability from its basic business in Gabon and a high, but lower operating result in Brazil compared to 2021. This is solely due to the exchange rate effect after the strong depreciation of the EUR and USD. “We assess the market situation as very good, given that building with wood has a positive effect on the climate goals compared to steel and concrete, as has come increasingly into focus after the Glasgow climate conference. We expect a gratifying development and a positive result in the current fiscal year,” the Company said in the press release.
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.
