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Avgol's results in Q2 2011 improve

01 Sep '11

6 min read

The ratio of Avgol's total net financial debt to EBITDA is under 2.2. Despite the fact that the Company has invested some USD 25 million to date in two new production lines concurrently, one in China and one in the United States, within the scope of its investment plan at the volume of some USD 80 million, the Company's net debt increased by only about USD 8 million.

The Company executed early repayments and refinancing of loans opposite some of the banking corporations, while rescheduling and extending the average duration of some of its debts, and at more favorable interest rates.

Avgol, a manufacturer of nonwoven fabrics for the hygiene market and the diaper industry, reports substantial improvement in its revenues and profitability during the second quarter of 2011.

Mr. Shlomo (Momo) Liran, Avgol's C.E.O., said today, upon the release of the financial statements, that “We are satisfied with the continued growth in the Company's revenue and profitability. These were achieved as a result of improvements in the operating efficiency of the existing production lines at all of the Company's sites, which contributed to the growth in sales and to our highly successful coping with the challenge of the spiraling raw materials prices. Avgol is proceeding with its substantial strategic investment in new infrastructure with the establishment of two production lines, in China and in the United States, at an investment of tens of millions of dollars, which will ensure the strengthening of the Company's business and competitive position and the consistent improvement in its profitability. Both of the production lines will be fully operational already during the first half of next year.

“I am pleased that, despite the substantial investments in infrastructure, the Company's degree of leveraging was not affected, and even improved compared with the corresponding period, thanks to the courses of action we implemented, coupled with responsible debt management. Avgol places special emphasis on superior-quality solutions in response to the growing demand, and invests in the development of new products and technologies for the manufacture of nonwoven fabrics, while sustaining its global leadership and promoting cooperation with major customers. Our products continue to be attractive, due to their uncompromising quality and innovation and due to the excellent service we provide to our customers.”

About Avgol:

Avgol is a global technology company, a world leader in the development, manufacture and marketing of nonwoven fabrics, mainly for the diaper industry. Avgol manufactures approximately 10% of the raw materials for diapers in the global market. Among Avgol's major customers are Proctor and Gamble and Kimberly Clark. The Company has 12 production lines: three lines in the United States, two production lines in China, one in Russia and six in Israel. The majority of the Company's sales are overseas.

Avgol Nonwovens