On Monday, wood pellet producer Cogra reported sales of 4.6 million euros for its 4th quarter 2023/24, which ended in June, down 47% year-on-year.

Over its entire offbeat fiscal year, the Lozère-based SME says it generated sales of 39 million euros, down 24% on FY 2022/23.

In a press release, the manufacturer of pellets for stoves and boilers explains the downturn in its business by the decline in heating consumption, against a backdrop of mild winter temperatures, coupled with a sharp drop in prices.

As a result of the downturn in the market, Cogra anticipates a deterioration in profitability over the past year, with an Ebitda margin rate slightly below the target of a margin 'sustainably above 10%' that had been set as part of its strategic plan.

The company plans to clarify its expectations for the 2024/25 financial year when it publishes its annual results for 2023/24, scheduled for September 9.

On the Paris Bourse, Cogra shares lost around 0.7% on Monday morning following these announcements.

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