Finance

The different segments of the group  :

• The “Chimney flues” segment grew by only 1.8% in a highly competitive and unfavourable environment. The construction situation has deteriorated, particularly construction of new buildings. Peak season ended very early due to social unrest and resulting logistical issues, but also besause of a very quiet February and March 2019. The segment’s profitability was affected by significant increases in the cost of raw materials and transport and by our withdrawal from the Turkish market, which was reflected in our financial year.

• The “Industrial Chimneys” sales declined by 2.4% in spite of improvement int the last quarter. The 2018/19 fiscal year was marked by insufficient orders and very poor visibility in new works. We also incurred significant additional costs on several large projects. The industrial, heat production and electricity markets remain sluggish. However, we saw a good financial year in maintenance, expertise and works. The segment’s profitability has deteriorated overall.

• The “fuels woods” segment has achieved its goal for the 3rd consecutive year. Turnover went from €30M to nearly €64M over 3 years and profitability has increased year after year. Our firewood sales increased dramatically despite a relatively mild winter, which strenghtens our strategy, which focuses on performance and quality. Market potential is highly significant and opens up great prospects for us in the years to come. We believe that consumers are seeking “turnkey” products which offer renewable and cheap energy in a context of rising prices for other energy sources. Our product lines are also perfectly compatible with the requirements of modern high-performance appliances.

Increase our profitability will be our primary objective in the coming years. 

For the 2019/20 fiscal year, the group plans to achieve sales between €250 and €255 million, an increase of 8% to 10%, driven by:

• Moderate (3%) but solid growth in the “Chimney duct” segment. We are encouraged by construction prospects related to renovation. Moreover, it the new housing market remains anaemic, the group offers innovative solutions to meet the needs of project owners (AIRWOOD for individual houses or THERMO-D for apartment blocks equipped with thermodynamic water heaters);

• A recovery in the “Industrial Smokestack” sector linked to diversification of activites, international development, energy recovery and the proper maintenance of the backlog os existing structures;

• Very steady growth (25-30%) in the “Fuel Wood” segment driven by rapidly expanding bio-fuel demand. Improved macroeconomic prospects, advertising and measures in favour of purchasing power and employment, as well as the proactive shift from fuel-powered generators to clean energies (wood, gas) offer a positive future for the group’s activities. Significan investments will be made in our factories to support the strong growth of EURO ÉNERGIE. 

As in the past year, increasing our profitability will be our primary focus for the coming years. For the 2019/20 fiscal year, we expect EBITDA of over 7% and net profit around 2%.

The Poujoulat Group is preparing to meet this objective:

• by strengthening its purchasing department to achieve significant savings;

• by optimising industrial capabilities, organisation, and IT and logistics tools (ERPs), in particular to meet e-commerce challenges;

• by integrating sustainable development as a driver of continuous improvement. 

The group’s teams will make every effort to improve operational performance and customer satisfaction.  

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