NEW YORK, Dec. 19, 2023 /PRNewswire/ — Nature Wood Group Limited (“Nature Wood” or the “Company”), a global leader in vertically-integrated forestry and FSC business operations, today disclosed its unaudited financial results for the six months ended June 30, 2023.
- Total revenue for the first half of 2023 stood at approximately $15.6 million, marking a decrease of 49.6% from the $31.0 million recorded in the same period of last year.
- The Company reported a loss of approximately $1.0 million for the period, a significant shift from the $3.8 million profit reported in the first half of 2022.
- The cash position at the end of the period was $2.1 million. Additionally, the Company strengthened its cash balance in the second half by raising a total of $7.5 million in September through its IPO, including proceeds from the over-allotment option, before deductions.
- The reduction in revenue was largely attributed to the global economic downturn, particularly impacting the home building and renovation sectors, and the ongoing geopolitical tensions from the Russian-Ukrainian war.
- Gross profit margin witnessed a decline to 20.6% in the first half of 2023.
- Selling and distribution expenses saw a decrease of 30.4%, primarily due to lower shipping costs resulting from the decreased revenue.
- Basic and diluted Loss Per Share were recorded at approximately $0.01 for the first half of 2023.
Strategic Initiatives and Future Outlook:
- Nature Wood is actively pursuing new opportunities in the burgeoning market of carbon credit sales, anticipating this venture to contribute significantly to future revenues with high margins.
- “In the face of ongoing global economic challenges and various geopolitical tensions, including the significant impact of the Russian-Ukrainian war, our business has continued to encounter headwinds in the latter half of 2023. These broad economic and political factors have notably affected demand in the construction and home renovation markets, which are crucial for our product line. Consequently, we foresee that these adverse conditions will significantly impact our financial performance for the second half of the year,” stated Mr. Jianjun Zeng, Chairman of Nature Wood.
“However, looking beyond the immediate horizon, our long-term outlook is marked by optimism and confidence. We recognize the immense potential in our primary markets, underpinned by expanding middle classes and low consumer debt levels. Our strategic focus on emerging opportunities, such as the high-margin carbon credit market, aligns with global trends towards sustainability and positions us favorably for future growth. We remain steadfast in our commitment to operational excellence and innovation, ensuring that Nature Wood is well-equipped to capitalize on the evolving market dynamics and deliver value to our stakeholders.”
- The Company has intensified its focus on streamlining operations and reducing overhead costs to maintain financial stability and support future growth.
- Nature Wood continues to leverage its vertically integrated model to optimize supply chain efficiency and enhance product quality.
- The detailed financial statements and analysis can be accessed in the Company’s filings with the SEC and on the Nature Wood website.
About Nature Wood Group Limited
Nature Wood Group Limited is a global leading vertically-integrated forestry company that focuses on FSC business operations, timber and wood products industry. The Company’s operations cover both up-stream forest management and harvesting, and down-stream wood-processing and distribution. Nature Wood offers a broad line of products, including logs, decking, flooring, sawn timber, recycled charcoal, synthesized charcoal, machine-made charcoal and essential oils, primarily through its sales network in Europe, South Asia, South America, North America and China. The Company is one of the largest exporters of wood products in Peru, with approximately 615,333 hectares of forest concessions as of June 30, 2023. In terms of the export value in 2021, the Company is (i) the second largest wood products export supplier; (ii) the second largest wood products export supplier certified by the FSC; and (iii) the largest decking product supplier, in Peru. Nature Wood is also the largest oak export supplier and the second largest hardwood export supplier, in France in terms of export volume in 2021. In addition, we intend to capture the significant growth in the carbon market through carbon asset development, carbon trading and other related business by taking the advantage of our own concession rights reserves and professional FSC forest management team. For more information, please visit: www.nature-wood.com.
Safe Harbor Statement
This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “likely to,” and similar statements. Statements that are not historical facts, including statements about the Company’s beliefs, plans, and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. Further information regarding these and other risks is included in the Company’s filings with the SEC. All information provided in this press release is as of the date of this press release, and the Company does not undertake any obligation to update any forward-looking statement, except as required under applicable law.
For media enquiries, please contact: Michael Wei, email@example.com
SOURCE Nature Wood Group Limited