Woodbois Ltd (AIM:WBI), the African-focused sustainable forestry company, turned profitable in 2021.
The company made a profit before tax of US$90.7mln compared to a loss of US$4.20mln in 2020 on turnover that rose to US$17.5mln from US$15.3mln.
The company’s gross profit margin jumped to 20% in 2021 from 8% in 2020.
Woodbois does not currently pay dividends but will consider doing so in the future.
The company said trading in the first quarter of 2022 was ahead of the same period of 2021 despite continued shipping challenges. The company is reluctant to predict when the shipping sector will begin to normalise and therefore is currently operating under the assumption that supply chain disruption will continue to constrain growth.
The board sees significant value in Woodbois's proposition of both growing a cash-generative, purpose-driven sustainable forestry business with highly favourable demand/supply dynamics, and leading large-scale nature-based carbon sequestration initiatives.
"These results clearly demonstrate the progress achieved by the group during 2021. Turning EBITDAS positive was another milestone on our growth pathway. Increases in factory capacity and total forestry concession hectarage delivered during 2021 and into 2022 have positioned the group for continued growth in revenues and profitability. Further capital investment is planned to continue our expansion in 2023,” said Paul Dolan, the executive chair of Woodbois.
“The company is now better positioned than ever to deliver faster growth and higher levels of profitability once outside factors, most notably shipping, allow," he added.