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Providencia records 560.7% higher net income

10 Nov '11

2 min read

Companhia Providência, a leader in the manufacture and sale of nonwovens in Brazil, with a significant presence in the Americas and operating globally, announces its results for the third quarter 2011 (3Q11). Net revenue increased by 22.4% compared with 3Q10, reaching R$142.7 million. Net income of R$ 15.4 million represented a year-on-year growth of 31.4%. Adjusted EBITDA improved by 81.4% relative to 2Q11, totaling R$32.8 million, while sales volume amounted to 22.7 thousand tons, an increase of 15.3% in relation to the same period in 2010.

“The positive results for the quarter and the increase in sales volume support our belief that we are on the right track and that our investments are producing a return. Our first production line in the United States, inaugurated in January in Statesville in North Carolina, is ramping up production, and contributed 5.5 thousand tons of nonwovens year to date”, says Hermínio de Freitas, CEO for Companhia Providência. “Our expansion plan is ongoing and one more machine is to be installed at our Statesville plant. Our aim is to double our overseas production capacity by the end of 2012”, Hermínio concludes.

In September, the company launched its 3rd buyback program for up to 2.26 million of its own shares. “We shall also be distributing dividends of R$ 14.1 million worth 100% of adjusted net profit in the period ending June 30th of this year. This value is equivalent to approximately R$0.18 per share”, Eduardo Feldmann, Companhia Providência's CFO explains.

At the end of the last quarter, the Company raised seven year financing worth R$ 100 million with the purpose of maintaining its growth momentum and on October 31st effecting full and early payment of the 15 thousand debentures trading in the market, amounting to R$100.5 million. “In this way we are lengthening Providência's debt profile and at the same time maintaining our current rate of investment so that the Company can continue to grow and meet the needs of our customers”, says Feldmann.

About Providência

Founded in 1963, Companhia Providência is the leading company in the manufacture and sale of nonwovens in Brazil with a significant presence in the Americas and operating globally. Economically sound and with a 48 year track record, Providência prides itself on the quality of its products and respect for its customers, suppliers, employees and shareholders.

Companhia Providencia