Gascogne’s 1H 2020 sales dropped by 10.5% to Euro 182.7 million, of which 6.6% in the 1Q 2020 and 14.5% in the 2Q 2020. The Wood Division’s sales (10% of consolidated sales) are down 36% and were strongly affected by the closure of DIY shops and the shutdown of construction sites for several weeks starting in mid-March. Packaging Division sales (90% of consolidated sales) were down by only 6.2%.
1H 2020 EBITDA grew by Euro 3.1 million (i.e. nearly 30%) from Euro 11 million to Euro 14.1 million. The underlying operating profit improved by Euro 1.9 million due to the increase in EBITDA, which is mainly reduced by the increase in amortisation due to the commissioning of the new electricity turbines at the Mimizan paper mill in late 2019.
Operating profit stood at Euro 2.6 million, down 47% compared to the 1H 2019, taking into account the provision recognised as a non-current expense under the Castets Site Planned Redundancy Programme. Net financial items were stable at - Euro 2.2 million. The consolidated net profit was Euro 0.4 million.
The Gascogne Group is the leading player in the wood industry in France, operating at every stage of the processing of forest resources, and the only player in France that is totally integrated along the complete wood-paperprocessing chain.
