In the first half of 2025, Precious Woods Group's EBIT amounted to Euro -1.3 million, while the net result improved to Euro -2.6 million. The improvement in profitability initiated in the second half of 2024 continued successfully in the reporting period. A stable order intake enabled utilization of production capacities at the sawmills in Gabon and Brazil as planned. However, the overall market environment remains challenging.
The decrease in consolidated net sales by 18 % to Euro 21.6 million (previous year: Euro 26.3 million) was primarily attributable to lower sales volumes of roundwood and veneer products, as well as delays in the shipment of sawn timber products from Gabon. The two largest business segments, PW Gabon and PW Amazon, generated sales of Euro 13.5 million (previous year: Euro 19.2 million) and Euro 5.6 million (previous year: Euro 5.1 million), respectively.
The cost reduction measures initiated in the previous year were continued and had a renewed positive impact on results in the reporting period. The ratio of production to sales was reduced from 64.9 % in the previous year to 51.0 %. The operating contribution increased to Euro 10.6 million . Personnel and operating costs were also reduced further as planned.
EBITDA amounted to Euro 0.8 million in the first half of the year, representing an improvement of Euro 1.7 million compared with the previous year. The EBITDA margin stood at 3.8 % (previous year: -3.3 %). PW Amazon achieved an EBITDA margin of 27.9 % (previous year: -13.0 %), with the prior-year period negatively impacted by one-off effects from inventory reduction. The EBITDA margin at PW Gabon was 2.1 % (prior year: 6.4 %), primarily due to declining sales of roundwood and veneer products. Depreciation and amortization at Group level amounted to Euro 2.2 million (previous year: Euro 2.7 million).
The financial result stood at Euro -1.0 million. Interest expenses amounted to Euro 0.6 million, which was Euro 0.8 million below the previous year’s figure. Exchange rate losses had a negative impact of Euro 0.4 million on the result (previous year: Euro +0.6 million). Overall, net result improved by Euro 1.9 million to Euro -2.6 million despite a decline in sales compared with the previous year. Excluding currency effects, the improvement amounted to Euro 2.9 million.
Outlook
For the full year 2025, the Group expects sales development to remain in line with the previous year and operating result to continue its positive trend. The continuous improvement of profitability remains a key objective. Given the still weak industry dynamics in the timber and construction sectors, Precious Woods is focusing on the consistent implementation of operational improvements and the gradual development of additional revenue streams.
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.
