Woodbois Ltd (AIM:WBI), which turned profitable last year, said it continued to increase profit margins this year and expects to generate more and more cash.
In a first quarter business statement, the Africa-focused sustainable forestry company also announced a management reorganization.
Executive Chairman Paul Dolan will return to his role as Chief Executive Officer, Federico Tonetti will step down as CEO and Non-Executive Director Graeme Thomson will serve as Chairman.
Head of performance management, Olivier Normand, has taken up his new role as director of operations for Gabon after the country’s production increased substantially last year.
Further operational improvements in Gabon were reported, with veneer production increasing by 13% and sawnwood by 24% compared to last year’s quarterly average. As the shortage of shipping containers continues, the company said 50% more containers were shipped in the quarter compared to last year’s average.
“We expect the business to increase both scale and profitability in 2022 as new production capacity comes online and assuming shipments return to more normal patterns,” the company said. society.
The group’s profit margins rose from 20% last year to 23% in the first quarter of 2022, Woodbois said, attributing this to the efficiency of the processes implemented in factories in 2021.
“The ramp-up in production levels has been carefully managed and limited to the corresponding volumes of product shipped to customers, to maintain a consistent cash conversion cycle and avoid excessive inventory buildup,” the company said.
“We still have additional production capacity at both plants to capitalize on, which we will begin to use when possible.”
Work to install a second plating line at the Mouila plant has been suspended pending some delayed critical parts, which management expects to be received this month to allow assembly final and tests before the end of June, thus doubling the existing capacity for 15,000 m² of veneer per year.
Due to shipping delays and the effects of Covid, Woodbois said it fully drew two credit facilities, totaling $4.3 million, but did not use a $2 million conditional facility agreed with principal. Lombard Odier investor.