(Boursier.com) — The EO2 Group recorded solid growth of +28.4% in the first half of 2023-2024 compared to the first half of 2022-2023. This performance was driven by the “wood pellet” activity which continued to evolve in a favorable economic environment, with market prices still high. The division’s turnover thus stands at 17.6 ME (vs 11.6 ME last year), i.e. growth of +52% supported mainly by a price effect, resulting from the context of price inflation of the ‘energy.
The Group’s half-yearly consolidated gross operating surplus (EBE) stands at 1.8 ME, compared to 3.1 ME in the first half of 2022-2023. This decrease is due to the recognition of a non-recurring charge of €1.4 million in personnel costs, linked to the allocation of free shares (AGA).
The gross margin remained high despite the increase in raw materials and operating costs were well controlled.
The half-year operating result, after depreciation and amortization amounts to €1.1 million, representing an operating margin of 5.4%.
After taking into account a financial result of +0.1 ME, a positive exceptional result of +0.3 ME and a tax charge of -0.5 ME, the net result Group share is rises to 0.9 ME (vs 1.3 ME in H1 2022-2023).
A solid financial structure
The cash flows generated by the activity over the first half of the year are positive at +2.4 ME, including a self-financing capacity of +2.8 ME and a slight increase of (0.4) ME in the cash requirement. Working Capital as of August 31, 2023.
These flows cover the net investments of the first half of the year which amounted to 2 ME dedicated in particular to the development of additional production capacities in “wood pelleting”.
EO2 thus generates positive free cash flow of €0.4 million over the first half. The Group is in a net cash position of 3.8 ME, with available gross cash of 14.3 ME and gross financial debts of 10.5 ME as of August 31, 2023.
The Group has a solid and healthy balance sheet position to pursue its investment strategy.
Outlook
For the “wood pellet” activity, the long-term outlook remains solid. EO2 continues to evolve in a generally buoyant market, supporting the energy transition of households and communities.
The context is more unpredictable in the short term with a rebalancing phenomenon after the exceptional 2022-2023 results obtained in a context of energy crisis. Market prices have therefore logically begun to ease compared to the record level of the second half of 2022-2023.
Faced with demand which remains buoyant, the Group aims to gradually increase its production capacities but remains cautious due to the mild weather conditions at the start of winter, which may weigh on market balances.
The Group thus confirms its strategy which aims to play a driving and virtuous role in the fight against global warming and the reduction of greenhouse gases.