Home / News / Pegas Nonwovens 2015 EBITDA down 6.1%

Pegas Nonwovens 2015 EBITDA down 6.1%

22 Mar '16

3 min read

Based on preliminary unaudited results, Pegas Nonwovens posted EBITDA at €44.3 million, down 6.1 per cent year over year for 2015.

“The achieved result means that the company reached the lower limit of its guidance range of €44.0–48.5 million,” a Pegas Nonwovens press release stated.

In 2015, the EBITDA margin was at a level of 19.3 per cent, which is 1.2 percentage points lower compared with 2014.

EBITDA margin adjusted for the effect of the revaluation of the share option plan reached 20.6 per cent in the reporting year, a level comparable to the preceding year.

For the year under review, the Czech Republic based company recorded consolidated revenues of €229.2 million; while quarter four consolidated revenues reached €59.6 million, up 1.4 per cent.

“Revenues remained stable because of production capacity, which is the key predetermining factor for sales volumes in tonnage terms, which remained unchanged year on year,” it explained.

“A record fourth quarter was instrumental in achieving this result, during which the company was very successful both in the area of sales as well as production output, which grew by 1.1 per cent,” Pegas noted.

Likewise, Pegas also significantly benefited from the polymer price pass-through mechanism and as a result, the price pass-through mechanism had a slightly positive effect on the overall 2015 results.

“On the other hand, the 2015 result was negatively impacted by the revaluation of the share option plan to fair value,” Pegas Nonwovens added.

Another factor negatively affecting the company's year-on-year results was the sharp strengthening of the US dollar and the slight appreciation of CZK against the euro.

In the fourth quarter of 2015, EBITDA reached €14.6 million, a rise of 10.8 per cent and this figure represents the best quarterly result in the company's history.

Compared on a year-on-year basis, the increase in EBITDA was also the result of significantly higher sales volumes and production in the fourth quarter approached record levels and year-on-year was down only 0.7 per cent.

The effect of the revaluation of the share option plan was a positive gain of €0.5 million, so EBITDA adjusted for this effect actually grew by 7.4 per cent to €14.1 million.

Fourth quarter of 2015 EBITDA margin was 24.5 per cent from a year ago period, while adjusted EBITDA reached 23.6 per cent, an increase of 1.3 percentage points compared to the same period in 2014.

“As one of last year's most significant achievements, I consider the completion of the refinancing of our bank debt via a private bond issue,” said František Rezác, CEO at Pegas.

“Due to this, we were able to secure long term financing for further development of the company under advantageous terms,” Rezac stated. (AR)

Fibre2Fashion News Desk – India

More PFNonwovens s.r.o. News...