Group results

First half-year 2017: Increase in sales by 7.5 % – EBIT margin of 8.1 % – positive net result

Earnings before interest and taxes (EBIT) of EUR 1.8 million were generated in the first half-year 2017. This is an improvement of EUR 0.5 million over the same period of the previous year. The increase is due to the country organizations in Gabon where the measures taken during the previous periods have shown effect. In Brazil, sales and the margin were lower than in the same period of the previous year. Production volumes remained constant. The net result was EUR 0.3 million (previous year period: EUR –0.4 million). The generated cash flow allowed the company to invest in productivity and a small reduction of debt. The working capital rose by EUR 2 million over the end of the year, due to inventory increases and a reduction of accounts payable.

The net sales of the Precious Woods Group in the first half-year 2017 were EUR 22.5 million and thus 7.5 % higher than the same period of the previous year (EUR 20.9 million). The exchange rate effect was 0.4 %. The saw mills in Gabon increased sales by 8.2 %, with sales in the veneer plant rising by 12.5 %. In Brazil, sales were 11.3 % lower than in the pre­vious year period. Sales from the trade of logs and sawn timber from Europe rose by 89.0 %, achieving EUR 2 million.

Again in the first half-year, there were delivery delays of sawn timber due to strikes by the customs authorities in Gabon and Brazil. Production was not affected, but the inventory of sawn timber rose accordingly. The first half-year in Brazil is always a challenge because timber species that are less known in the sales markets must be processed and sold.

The gross profit was EUR 14.1 million and thus 11.2 % higher than the previous year period (EUR 12.7 million). The gross profit margin was 63.0 %, compared with 60.9 % in the pre­vious year. The improvement is due to higher yield in the saw mills in Gabon (+2 percentage points) and in the veneer plant (+6 percentage points). The yield in the saw mill in Brazil reached the level of the previous year. Earnings before interest, taxes, depreciation and amortization (EBITDA) was EUR 4.1 million (previous year: EUR 3.8 million), corresponding to a margin of 18.2 %. Earnings before interest and taxes (EBIT) reached EUR 1.8 million (previous year: EUR 1.3 million), with a margin of 8.1 %.

The financial result was EUR – 1.3 million (previous year: EUR – 1.8 million). The pure interest charge was EUR 1.1 million (previous year: EUR 1.4 million). The net profit amounted to EUR 0.3 million, representing an increase of EUR 0.7 million over the same period of the previous year. The equity ratio was 27.0 % (end of previous year: 28.1 %). The change is due to exchange rate effects.

Working capital was EUR 13.5 million and thus about EUR 2 million higher than at the end of the previous year. While the log inventory was reduced, the sawn timber inventory increased by the same extent due to the delivery difficulties mentioned above. Trade receivables were at the level of the end of the previous year at EUR 5 million. Trade payables fell by EUR 2.2 million. Overall, net debt fell by EUR 0.6 million to currently EUR 30.0 million.

Operating cash flow was EUR 1.9 million (previous year: EUR 3.6 million). This includes the change in net working capital of EUR – 1.5 million (previous year: EUR 0.4 million). Investments amounted to EUR 0.9 million (previous year: EUR 1.0 million).

Brief remarks on the individual companies: