Pegas nonwovens Q1 revenues hike 12.7 %

"Our entry into 2013 has been very good. In the first quarter of this year we achieved an EBITDA in the amount of EUR 10.1 million, which is 6.0% above last year's result. We can be particularly pleased with the situation in the area of sales, where we have not only been successful in booking all of our production but over the course of the previous quarter we also managed to significantly lower our inventory levels.

With patience and careful optimism we are now looking forward to the most important moment of this year - the launch of the new production line in Egypt. Over the last two years we have put a significant amount of effort and resources into this project and so we firmly believe that the technical skills and ingenuity of our people will bear fruit and that the launch of the production facility will be in line with our plans and expectations," said František Rezác, CEO and Member of the Board of PEGAS NONWOVENS SA.

Consolidated Financial Results

Revenues, Costs and EBITDA

In the first quarter of 2013, consolidated revenues (revenues from sales of the Company's products) reached EUR 49.9 million, up by 12.7% yoy. This year-on-year revenue growth resulted from higher sales of finished products, as well as sales of inventories accumulated in prior periods and furthermore by an increase in polymer prices.

Total consolidated operating costs without depreciation and amortization (net) went up by 14.6% yoy to EUR 39.9 million in the first quarter of 2013. The main factor impacting this increase was the increase in raw material prices and the higher consumption of polymers resulting from good sales levels.

In the first quarter of 2013, EBITDA amounted to EUR 10.1 million, up by 6.0% yoy. This result is in line with the guidance range announced at the beginning of the year, when the Company indicated a year-on-year increase in EBITDA of 5% to 15%. This growth in EBITDA has been achieved namely due to good performance in the area of sales, which saw a significant decline in the level of inventories on stock.

The lower number of planned maintenance breaks also had a positive effect on the profitability of operations in this period. On the other hand, the year-on-year comparison was negatively impacted by growing staff costs resulting from a higher number employees that were required for putting the new Egyptian production line into operation, and the revaluation of the share option plan to fair value. The polymer price pass-through mechanism had a neutral effect on the year-on-year comparison.

In the first quarter of 2013, the EBITDA margin was 20.1%, which is 1.3 percentage points lower compared with the same period in 2012.

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Pegas nonwovens