(Boursier.com) — The Group EO2 recorded strong growth of +30.7% to €40.05 million over the 2022-2023 financial year compared to the 2021-2022 financial year. This performance was mainly driven by the “wood pellets” activity, which benefited from a particularly favorable economic environment, with very high market prices, reflecting the increase in demand in search of alternative energy solutions and a less abundant, especially from Eastern countries. The division’s turnover thus came to 31.8 ME (23.2 ME last year), representing growth of +37.1% sustained by a significant price effect and a moderate volume effect.
“Energy services” activities are also on the rise and contribute €8.3m, compared to €7.5m in 2021-2022, an increase of +10.3%. Growth is mainly driven by the gas boiler installation and maintenance activities carried out by SVM. The activities of WEYA and its subsidiaries are less well oriented due to the impact of the inflationary context on its markets.
Operating income increased by 48.3% to 42.7 ME (compared to 28.8 ME in 2020-21) incorporating a 2.2 ME increase in stored production to meet demand.
The good level of activity recorded over the half-year enabled better absorption of operating costs despite the inflation of certain items such as energy. The Group’s consolidated half-year gross operating surplus (EBITDA) increased by 228% to 9.2 ME, compared to 2.8 ME for the 2021-2022 financial year.
Operating income, after depreciation and amortization, rose sharply to €6.4 million in February 2023, representing an operating margin of 16%. Almost all of the result is generated by the “wood pellets” division, the “energy services” division being at operating break-even.
After taking into account a depreciation of assets for -0.3 ME, a financial result of -0.2 ME, a positive exceptional result of +0.3 ME and a tax charge of -1.8 ME, net income Group share amounted to 4.6 ME (vs. 0.6 ME in 2021-2022).
A solid financial structure
The Group’s cash flow increased to 7.4 MEUR (against 2.5 MEUR last year). The cash flows generated by the activity amount to 5.5 MEUR after taking into account the increase of 1.9 M in the Working Capital Requirement (WCR) in this context of growth.
These flows largely cover the net investments for 2022-2023, which amount to €2.1 million. The Group thus generated positive free cash flow of EUR 3.4 million over the financial year, which strengthened the Group’s cash position.
The Group is thus in a net cash position with available gross cash of €14.7 million greater than gross financial debt, which stood at €12 million as of February 28, 2023.
The Group has a solid and healthy balance sheet to pursue its investment strategy.
Prospects displayed
The start of the 2023-2024 financial year continued to unfold in a favorable context for the Group’s activities. The Group nevertheless remains attentive to market developments in a volatile and inflationary environment which can quickly cause the balance between supply and demand to vary, making it difficult to make precise short- and medium-term projections.
Overall, the Group intends to pursue the development of all of its activities around sustainable energies to support the energy transition of households and communities.
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.