(Boursier.com) — The Group EO2 recorded solid revenue growth of +22.1% in the 1st half of 2022-2023 compared to the 1st half of 2021-2022. It comes to 15.83 million euros. This performance was driven by the ‘wood pellets’ business, which evolved in a context of exceptionally high market prices in the 1st half.
Operating profit, after depreciation and amortization, stood at €1.9 million at the end of August 2022, i.e. an operating margin of 12%.
After taking into account the financial result of -0.1 ME, a positive exceptional result of +0.2 ME and a tax charge of -0.6 ME, the net income Group share amounted to 1.3 ME.
The Group’s cash flow increased to 2.4 ME over the half-year (1 ME last year). However, the cash flows generated by the activity are negative at -1.5 ME due to the increase of 3.9 ME in the Working Capital Requirement at August 31, 2022. This change in WCR is mainly due to the seasonal increase in stocks and the setting up of a €2.9m current account granted to SAS Le Pacte de Giens. Financial debts are 11.4 ME at August 31. At the end of the semester, available cash is 9.2 ME. The group has solid leeway to pursue its investment strategy.
Outlook
The start of the second half is taking place in a context that is still favorable for the performance of the wood granulation division, in line with the first half. However, the Group remains attentive to market developments in a volatile and inflationary context which can quickly cause the balance between supply and demand to vary.
This volatility reinforces the Group in its diversification strategy, which thus intends to pursue the development of its activities in the short and medium term to support the energy transition of households and communities. One of the challenges is in particular the recruitment of skills to take advantage of market potential.
Beyond the financial performance criterion, the EO2 Group is positioning itself as a driving and virtuous player in the fight against global warming and the reduction of greenhouse gases. The Group is committed to carrying out this mission with a strong societal dimension, combining the support and well-being of all employees as well as the quality of its relations with economic decision-makers and customers.
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