Woodbois Ltd (AIM:WBI), the Africa-focused forestry, timber trading, reforestation and voluntary carbon credit company, said it saw all key financial metrics improve in its third quarter.
Revenue increased 29% to a record $5.8 million from a year earlier, with total year-to-date sales also at a new high of $17.1 million , up 35%. Margins have fallen from 20% in 2021 to 24%, helped by the strength of the dollar, prices being set in US currency and local costs.
Sawmill production was 6,032 cubic meters (m3), a 78% increase from the 2021 quarterly average, while veneer production increased by 45% to 1,418 m3.
Woodbois said this was a new record for sawn timber production while veneer production was constant, with shipment of its own production also the highest on record.
Looking ahead, Woodbois said he sees global economic uncertainty currently leading to some slowdown in demand, but expects to offset this with the sale of higher value products.
“Completing FSC certification of our timber concessions and mills remains a top priority and is now 62% complete,” he added.
Gabon last year became the first country in Africa to be paid to protect its forests and Woodbois said its own reforestation plans are underway and will likely involve a pilot project on low carbon stock land in the existing concessions.
Gabon is expected to continue to play a leading role at the upcoming COP27 climate summit in Egypt, Woodbois said and its senior leadership will attend the event.
In a statement, Paul Dolan, Chief Executive Officer of Woodbois, said, “The business maintained its strong momentum throughout the third quarter, delivering record quarterly revenue, production and margins.
“With further high value-added production increases underway, we have a busy end to the year. Virtually regardless of market conditions, we confidently look forward to further growth in 2023 and beyond.”
Woodbois noted that Henry Turcan of its main shareholder Lombard Odier was also to step down as a non-executive director of the company to focus on his other businesses.