Gascogne’s Board of Directors examined the accounts for the first-half 2018. The first half-year was characterised by the continued rise in the cost of materials (wood and paper) and energy. With regard to wood, the price of standing timber has risen by more than 30% over the past 18 months, making a considerable impact on the Group’s accounts.
First-half sales totalled Euro 207.2 million, down 3% compared to the first half-year 2017. Sales for the Wood Division decreased by 12%, largely due to the rises in wood price, which led to stop or reduce the least profitable production lines. Sales for the Packaging Division are practically stable.
EBITDA decreased by 12.9%, from Euro 15.3 million to Euro 13.3 million.
The underlying operating profit decreased from Euro 10.2 million to Euro7.2 million as a result of the Euro 2 million EBITDA drop and a Euro 0.9 million increase in the depreciation level.
The operating profit is Euro 6.9 million and integrates other non-operating income and expenses for a total of Euro 0.3 million. Net financial items are negative and stand at Euro 2 million, a decrease of Euro 0.4 million mainly due to the implementation of new financing measures in late 2017.
Net profit stands at Euro 5 million, stable compared with the first half-year 2017.
In operational terms, the second half-year 2018 should be more favourable than the equivalent period in 2017, thanks in particular to the fact that no stoppage of the Gascogne Papier plant is scheduled.
The Gascogne Group is the leading player in the French wood industry, operating at every stage of forest resource processing.
