Group results

Higher sales and earnings in the first half of 2021

In the first half of 2021, Group sales amounted to EUR 27.2 million, and earnings before interest and tax (EBIT) amounted to EUR 3.5 million or 13.0%. Sales growth was 17.6% over the same period of the previous year, and EBIT increased by EUR 4.0 million. This result was achieved despite a further increase in working capital of EUR 2.9 million. In the first half of 2021, maintenance work was carried out in the sawmills in Gabon in May and in Brazil in June, which reduced industrial activity during those periods. The sawn timber volumes of all sawmills were 16.9% above the previous year. Operations in Brazil developed positively in line with expectations, and the exchange rate also developed to our advantage. The Group’s net result reached EUR 1.4 million (same period previous year: EUR –2.3 million). The generated cash flow was below expectations due to the capital tied up in inventory. Debt decreased by EUR 1.6 million from the end of the previous year, mainly due to the CHF/EUR exchange rate. The outlook and expectations for the full year 2021 positive. Prices can currently be increased and productivity maintained, or even slightly improved.

in EUR million   30.06.21   30.06.20   Index   Change
Net Sales Precious Woods Group   27.2   23.1   117.6%   +4.1
Net Sales Precious Woods Gabon   17.8   15.8   112.8%   +2.0
Sawmills   13.2   12.0   109.7%   +1.2
Veneer plant 1   0.0   6.3   0.0%   –6.3
Net Sales Precious Woods Amazon   7.4   6.2   119.0%   +1.2
Sawmills   6.9   6.2   111.3%   +0.7
Biomass power plant 2   0.2   0.0        
Net Sales Precious Woods Trading   2.0   1.4   142.5%   +0.6
1 Veneer sales included until September 30, 2020
2 Energy sales included as of June 1, 2021
The exchange rate effect on sales was -1.2 % compared to the same period last year.

Net sales group


EUR million

Global timber markets developed positively in terms of volume and price. Today’s average prices are above last year’s as a result of shortages in raw materials. However, we expect this situation to normalize again towards the end of the year. The order volume is high and allows for continuous production. In Brazil, not all the logs could be evacuated from the forest last year, which is why our subsidiary faced a shortfall in production during June 2021. At the beginning of July 2021, production resumed at the sawmill. In Gabon, the inventory of both logs and sawn timber volumes was high because transport to the veneer plants and the port was severely affected by logistics challenges. In Brazil, we continue to benefit from a weak Brazilian real against the EUR and USD, even though it has meanwhile recovered somewhat from last year’s low. The adverse effects due to the Covid-19 situation are noticeable especially in the frequency of shipments. Fortunately, we were not affected by any major restrictions in production.

Effective 31 May 2021, Precious Woods fully acquired BK Energia and repurchased 60% of the shares. The former 40% stake was consolidated at equity and has been fully consolidated since June 2021. Power sales as of June 2021 amounted to EUR 0.3 million and contributed to the reported increase in sales.

The merger of the two veneer plants into the new company CPL in Gabon has shown first positive results. Precious Woods holds a 49% stake in this company, which is consolidated at equity, and log deliveries are completely eliminated at group level. The external sales of CPL are realized through Precious Woods Holding Ltd.



EUR million

Earnings before interest, tax, depreciation and amortization (EBITDA) amounted to EUR 5.5 million (previous year: EUR 1.6 million), corresponding to a margin of 20.3%. Earnings before interest and tax (EBIT) reached EUR 3.5 million (previous year: EUR –0.4 million) and a margin of 13.0%.

The financial result was slightly above the previous year period at EUR –1.5 million (previous year: EUR –1.3 million). The current interest charge amounted to EUR 1.2 million (previous year: EUR 1.3 million), due to the investment volumes in Gabon since 2019. The net result was EUR 1.4 million (previous year: EUR –2.3 million). Exchange rate effects on the net result amounted to EUR –0.1 million (previous year: EUR 0.1 million).

Equity ratio


The equity ratio was 39.2% on the reporting date (end of previous year: 35.9%). The land values and biomass in Brazil are accounted for in BRL. The slight exchange rate recovery over the end of the year and the net profit had a positive effect on equity. Net debt fell by EUR 1.6 million from the end of the previous year to EUR 39.2 million.

Operating cash flow was EUR 2.6 million (previous year: EUR 3.5 million). This includes the change in net current assets of EUR –3.3 million (previous year: EUR 2.1 million). Investments amounted to EUR 0.8 million (previous year: EUR 2.6 million).

Working capital


EUR million

This result was achieved despite a further increase in working capital of EUR 2.9 million compared to the end of the previous year. Working capital rose again due to delivery problems in Gabon. At 34.9% of annual sales, working capital is still too high and ties up about EUR 5 million too much. As of the reporting date, working capital amounted to EUR 17.7 million. Inventories of logs and sawn timber decreased by EUR 1.3 million. At EUR 12.9 million, accounts receivable were EUR 4.4 million higher than at the end of last year, given that June was the month with the highest sales so far. Accounts payable increased slightly by EUR 0.2 million.

A few brief remarks summarizing the results in the individual companies: