Woodbois Ltd (AIM:WBI), the Africa-focused forestry, timber trading, reforestation and voluntary carbon credit company, has said it saw all key financial metrics improve in its third quarter.
Revenue rose by 29% to a record US$5.8mln compared to a year earlier, with total sales in the year so far also at a new high of US17.1mln, up 35%. Margins rose to 24% from 20% in 2021 helped by the strong dollar, with prices being set in the US currency and costs locally.
Sawmill production was 6,032 cubic metres (m3), a 78% increase on the 2021 quarterly average while veneer production rose by 45% to 1,418m3.
Woodbois said that was a new record for sawn timber production while the output of veneer was consistent, with shipping of its own production also the highest ever.
Going forward, Woodbois said it sees the global economic uncertainty currently leading to some softening of demand but expects to offset this with the sale of higher value-added products.
“Completing FSC certification of our forestry concessions and factories remains a top priority and is now 62% complete," it added.
Gabon last year became the first country in Africa to be paid to protect its forests and Woodbois said its own afforestation plans are ongoing and likely to involve a pilot project on low-carbon stock land within existing concessions.
Gabon is expected to continue to play a leading role at the upcoming COP27 climate summit in Egypt said Woodbois and its senior management will attend the event.
In a statement, Paul Dolan, Woodbois chief executive, commented: “The business maintained its strong momentum throughout Q3, delivering record quarterly revenues, production and margins.
“With further high-value production increases underway we have a busy run-into year-end. Almost regardless of market conditions, we look forward with confidence to further growth in 2023 and beyond.”
Woodbois noted that Henry Turcan from its major shareholder Lombard Odier is also to step down as a non-executive director of the company to focus on his other activities.