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Nonwovens producer Pegas posts EBITDA growth of 22.4%

21 Mar '15

3 min read

Based on preliminary unaudited results, Pegas Nonwovens SA, a producer of nonwovens reported EBITDA growth of 22.4 per cent year over year for 2014.

In 2014, EBITDA amounted to €47.2 million, up 22.4 per cent over 2013 and in doing so, Pegas also surpassed the range of 12-22 per cent, it had projected.

In the reporting year, the Czech Republic based nonwovens manufacturer also recorded consolidated revenues of €230.5 million, also up by 15.7 per cent from the year earlier.

In a press release, Pegas also said, in the fourth quarter of 2014, consolidated revenues reached €58.8 million, an increase of 10.4 per cent above that achieved in 2013.

“The year-on-year growth in revenues was the result of higher sales of finished products from the new production line in Egypt as well as a slight increase in polymer prices,” it added.

The production from the Egyptian plant, which was in full commercial production mode throughout 2014, was a substantial contributor to this growth.

An increase in sales of technologically advanced materials also had a positive effect and Pegas continued to benefit from the low CZK/EUR exchange rate.

“The year-on-year appreciation of the USD against the EUR has thus far had a negligible effect on results as the appreciation occurred in the last quarter of the year,” it observed.

However, the raw material price pass through mechanism had a negative impact on the year-on-year comparison, which was also mitigated in the fourth quarter, when polymer prices declined substantially.

Also in 2014, the growing price of the Company's shares and the resulting revaluation of the share option plan to fair value had an impact on the financial results, although this too was negligible.

In the fourth quarter of 2014, EBITDA reached €13.2 million, a rise of 23.8 per cent year on year also driven by raw material price pass through mechanism.

Pegas also attributed the good results to increased production volumes in both, the Czech Republic and Egypt when compared with comparable periods in the previous year.

Additionally, the reduced impact of the revaluation of the share option plan compared with the fourth quarter of 2013 and the weaker CZK/EUR exchange rate also had a positive effect.

In 2014, the EBITDA margin was 20.5 per cent, which is 1.1 percentage points higher from 2013, while in the fourth quarter, EBITDA margin stood at 22.4 per cent, up 2.4 percentage points, year over year.

“I consider the greatest achievement to be the fact that our Egyptian production line ran problem free for the entire year, thereby making a substantial contribution to the results,” CEO František Rezác said.

“Another indisputable success indicating shareholder trust was the positive response to the bond issue, which promises to provide us with increased flexibility and diversification of funding sources,” he too added.

Once again after two years, Pegas received the prestigious ‘Partner of the Year’ Award from one of its important customers, Procter & Gamble in 2014. (AR)

Fibre2fashion News Desk - India