Woodbois Limited, an African forestry and wood trading company, reported higher sales in the first half of 2021 and anticipates sawn timber output to climb by 30% in the second half.
In the first half of the year, Woodbois, which conducts sawmilling and veneer operations in Gabon, reported revenues of USD 8.2 million, up from USD 6.7 million in the previous six months. The gross profit margin for the first six months of 2021 showed a significant improvement, rising to 20% from 8% in FY 2020.
The installation of a Primultini sawmill line has been completed, resulting in a 30 percent increase in sawn timber output in H2 2021.
In a separate €800,000 transaction, CEMA Bois De L’Atlas (one of Africa’s major plywood makers) acquired two more veneer plants in Gabon. The first line is planned to arrive in Q3 2021 and be installed in Q4 2021, while the second line will arrive in H2 2022 and be installed.
Woodbois is considering a variety of African reforestation projects that would allow the firm to create carbon credits for distribution in the Voluntary Carbon Market after its entry into the carbon credit market in Q1.
Total sawn timber output in H1 2021 was 7,000m3, a 75 percent increase vs H2 2020. Total veneer output was 1,830m3 in H1 2021, a 66 percent increase on H2 2020.
Enhanced earnings, according to Woodbois, were due to improved product quality from new manufacturing facilities, robust worldwide demand for sawn timber, and commensurate price increases.
“Woodbois’ ability to move products was disrupted by a combination of equipment constraints, a decline in port productivity, and a reduction in carrier capacity, resulting in a temporary knock-on effect on booked revenue.”
‘Once the freight sector normalises, which experts predict will happen later this year or early in 2022, the business expects a significant increase in revenue growth as well as further margin improvement as shipping costs return to trend.’
