Groupe Gascogne increases results and profit
In 2016, French Groupe Gascogne increased both results and profit. The EBITDA was up by 32% to €22.0m. Appreciable contributions to the improvements were made by a €3.4m reduction in wages and €1.6m lower energy costs. However, even higher EBITDA growth was prevented in 2016, as in 2015, by higher timber-procurement costs. In 2014, when Groupe Gascogne had in agreement with banks, financial authorities and investors started extensive restructuring measures, the EBITDA had reached only half of last year’s figure, at €11m.
An even greater improvement than that shown by the EBITDA was achieved in 2016 in the net operating result after allocations to reserves, with year-on-year growth of 51% to €11.6m, after 2014 had seen a value of only €0.8m. After deduction of the continuing negative financial result of minus €3.1m, profit before tax was slightly down year on year, at €7.7m. In contrast, profit after tax increased slightly, at €7.4m. The year-on-year deterioration in financial result in 2016 was partly attributable to currency-exchange-rate effects.