Woodbois Limited said it is on track to deliver “strong revenue and profitability growth” in 2022 as it reported significantly improved first-half results on the back of record production.
The figures for the six months to 30 June 2022, which had been flagged by the Africa-focused forestry and timber trading company in a recent trading update, showed revenue of US$11.3mln, up 38% on the same period last year.
Gross profit jumped 59% to US$2.7mln and the margin improved to 23% from 20%.
Earnings before interest, taxes, depreciation, amortization and stock-based compensation (EBITDAS) surged 141% to US$1.1mln and the company recorded its first ever operating profit of US$15,000 versus a US$0.7mln loss the year before.
The Gabon-based company saw positive operating cash inflow before income taxes and finance costs of US$0.2mln versus outflow of US$2.2mln in the first half of 2021.
"In the first half of 2022 we have achieved record levels of production, strong revenue growth, further improvement in both margin and EBITDAS, as well as a first maiden operating profit with a positive operating cash inflow,” said CEO Paul Dolan.
“Whilst there are challenges our highly motivated team are on track to deliver further strong growth in our metrics, including revenue and profitability."
Sawn timber production totalled 9,565 cubic metres (m3) in the first half, up 37% year on year, while total veneer production climbed 50% to 2,740m3.
Shipped volumes were the best since before the pandemic, with the total number of containers shipped in the second quarter increasing by 24% over the previous three-month period, Woodbois said.
The second veneer line installed at the factory in Mouila in Gabon is currently undergoing final testing and will start production in August, which will “generate additional higher value product and will represent another significant milestone of achievement”, it added.
Work on FSC certification is now over 60% complete and the company said it is aiming for completion during 2023.
Its cash balance stood at US$2.1mln as at 30 June 2022 and it had working capital of US$9.8mln.
Commenting on the macroeconomic environment, Dolan said: “Ultimately, global demographics and the supply demand imbalance for sawn timber is in our favour, and operators like ourselves are protected from inflationary pressures on our raw material input through ownership of the whole supply chain from forest to buyer.”
Noting that Woodbois is not immune to higher energy costs and fuel shortages, he said the company will continue to carefully monitor risk exposure at both a country and customer level and “will use the levers at our disposal such as switching geographic sales direction in line with prevailing economic conditions in order to minimise any potential margin erosion”.