Woodbois reports healthy revenue increase and completion of Primultini sawmill line

Woodbois, which operates sawmilling and veneer operations in Gabon, recorded revenues of US$8.2m in H1, up from US$6.7m from the previous six-month period. Gross profit margin for the first six months of 2021 demonstrated a strongly positive change of basis, advancing to 20% vs 8% for FY 2020.

The installation of a Primultini sawmill line has been completed, which will help sawn timber output to increase by 30% in H2 2021.

The acquisition of two additional veneer lines in Gabon from CEMA Bois De L'Atlas (one of Africa's largest plywood manufacturers), has also taken place in an €800,000 deal. The first line is expected to be delivered in Q3 2021 and installed in Q4 2021, and the second line expected to be delivered and installed in H2 2022.

Following Q1 entry into the carbon credit market, Woodbois is reviewing a number of African reforestation projects, which would allow the company to generate carbon credits for distribution in the Voluntary Carbon Market.

Total sawn timber production in H1 2021 was 7,000m3, a 75% increase vs H2 2020. Total veneer production was 1,830m3 in H1 2021, a 66% increase on H2 2020.

Woodbois said improved profits reflected quality of products from its upgraded manufacturing facilities, strong global demand for sawn timber and a corresponding increase in prices.

“In common with other exporters globally, the Company's top line in H1 2021 was impacted by constraints in the freight shipping industry,” the company said.

“A combination of equipment shortages, a drop off in port productivity and a reduction in carrier capacity impacted Woodbois' ability to transport goods, creating a temporary knock-on effect on booked revenue.

“Once the freight industry normalises, which experts have forecast for later this year / early 2022, the company expects a step change in pace of revenue growth as well as further margin improvement as shipping costs revert to trend.”