(Boursier.com) — At the end of the 2021 financial year, Gold by Gold achieved a consolidated turnover of 6.9 ME, against 3.1 ME in 2020, an increase of +121%. Beyond the post-pandemic rebound in activity, the 2021 financial year was above all marked by the redeployment of the Gold Trading activity from the group’s new base in Colombia, following the cessation of activities. in Peru since the end of 2019.
The Trading & Refining division traded 110 kg of Gold during the 2021 financial year (vs. 20 kg in 2020). This recovery in Gold exports took place in a bullish Gold market context (+4% variation in the price of Gold expressed in euros in 2021 compared to 2020, following an increase of +15 % in 2020 compared to 2019 – Source: World Gold Council). The refining activity, mainly dedicated to traced gold, has refocused on France where demand remains concentrated on innovative jewelers and craftsmen.
The activity of the Collection & Recycling division remained sluggish in 2021, the French legislative and regulatory framework still not allowing the redeployment of gold recycling to individuals on the internet to be envisaged.
2021 annual financial results
In 2021, the gross margin stood at 494 KE, against 208 KE a year earlier. Its sharp increase in value reflects (i) the recovery of gold trading activities during the year, and (ii) the favorable trend in the euro/dollar parity over the period. The gross margin rate thus stands at 7.1% in 2021 compared to 6.6% during the previous financial year.
The operating loss stood at -260 KE, compared to -307 KE in 2020. The operating expenses for the 2021 financial year take into account the increase in the workforce of the Colombian subsidiary, which stood at 5 people at the end of 2021, and structural and administrative costs associated with the creation of this new subsidiary. Despite its significant increase, the volume of gross margin achieved in 2021 was still insufficient to absorb the increase in structural costs linked to the redeployment in Colombia.
The financial result and the exceptional result are not significant in 2021. As a reminder, in 2020, Gold by Gold had recorded a positive exceptional result of 309 KE, mainly consisting of adjustments to provisions linked to the evolution of the parity euro/dollar. In the end, the annual net loss amounts to -164 KE in 2021.
Gold by Gold maintains a healthy balance sheet as of December 31, 2021
The Group’s consolidated shareholders’ equity was €3.9m. Available cash amounted to 3.7 ME and inventories stood at a level of 1.2 ME.
Financial debts totaled 251 KE, including 250 KE under a loan guaranteed by the State (PGE). At the end of 2021, Gold by Gold benefited from a net cash surplus of 3.4 ME.
Gold by Gold will propose to the next general meeting of shareholders the payment of a dividend of 0.04 euro per share for the 2021 financial year, identical to that of the three previous financial years.
Outlook
After having successfully carried out its redeployment in 2021 from its new Colombian base, Gold by Gold intends to continue in 2022 the ramp-up of its Gold Trading activities, while taking advantage of a market context today. bearer on gold prices.
In Peru, Gold by Gold remains mobilized and supports ongoing legal actions.
In 2022, the Group will ensure that its cost structure is now stabilized, particularly in Colombia, and that its financial situation is preserved.