On Monday, Cogra reported better-than-expected half-year results, as the pellet producer took advantage of a buoyant wood-for-energy market.

In early trading, the stock climbed by more than 6.5% on the Paris Bourse.

For the first half of its 2021/2022 financial year, ending December 31, the Mende-based group said it had generated a "historic" Ebitda of 4.9 million euros, corresponding to an operating margin of 19%.

Net income for the period came to 2.58 million euros, a threefold increase on the 805,000 euros reported a year earlier.

Already published, half-year sales reached 25.4 million euros, up 25% on the previous year.

In its press release, Cogra explains that it benefited fully from its production capacities, increased by the commissioning of a new plant, and from the sound management of its inventories and supplies.

The company also points out that it has chosen to limit the increase in its selling prices to its customers.

After this successful first half, Cogra anticipates a solid second half and expects to achieve an Ebitda margin of at least 15% for the full year, recalling the seasonal nature of its business, which is very much focused on the winter season.

We believe that this target will be comfortably exceeded", commented Euroland's analysts this morning, who confirmed their price target of 21 euros and their buy recommendation on the share.

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