Woodbois (WBI) , an Africa-focused forestry and timber trading company, announced its unaudited results for the 6 months to June 30, 2024.
Woodbois reported a much improved EBITDAS of US$(0.6)m, down from a US($2.8)m loss in H1 2023. Gross profits more than tripled year-on-year to US$1.8m, up from US$0.5m in H1 2023. While profits climbed, revenues decreased to US$3.64m from US$4.8m LY.
Working capital was up to US$2.5m from US$9.0m LY, and group borrowing declined to US$4.1m from US$5.6m LY. WBI maintained a cash balance of $0.7m at the end of the period on June 30, 2024.
Operationally, Woodbois reported sawn timber production of 5,040 m3, up significantly from the 3,700 m3 reported in H1 2023. Veneer production was 1,840 m3, compared to 2,000 m3 in H1 2023. WBI said the latter had suffered operational setbacks at the beginning of the year, which have now been resolved, with production having resumed at a consistent, higher rate.
Johannes Bloemen, CFO, commenting: "The first half of 2024 has been a period of continued transformation and operational restructuring for Woodbois. Despite the challenges we've faced, our financial performance reflects the progress made in stabilizing our operations and laying the groundwork for future growth."
View from Vox
Woodbois marks a positive H1 with a much narrowed loss and improved profits, demonstrating a successful prior restructuring and cost-saving campaign. Financial and operational performance in H1 suggests a successful turnaround, with the company well-positioned for continued growth.
The group expects even stronger performance for the full-year to December 31, 2024, driven by forecast improved revenue in H2 as well as continued progress on operational efficiency and cost control. Woodbois is aiming for profitability following the much narrowed loss in H1, supported by increased output and the resolution of issues with veneer production.
Additionally, WBI expects to register for new carbon credits in Gabon within the next 6 months, yielding a new revenue stream for FY25, and boosting its ESG credentials. Overall, the group is on track for strong full-year results, with significantly increased production outputs in H2 and continued growth toward profitability.
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