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Pegas Nonwovens records 2.9% hike in Q1 revenues

01 Jun '15

3 min read

Based on unaudited results, Czech Republic headquartered nonwovens producer Pegas Nonwovens SA recorded a 2.9 per cent year over year revenue growth in the three months to March 31, 2015.

A Pegas press release informed that its revenue grew to €60.6 million in the first quarter of 2015, up 2.9 per cent over the three months period to March 31, 2014.

“The rise in sales was mainly the result of the dollar's appreciation against the euro, which had a positive effect on sales in Egypt, where customers are invoiced predominantly in dollars,” it said.

Sales volumes in tonnage terms were at comparable levels to last year, while the effect of the price pass-through mechanism on revenues in the comparable periods was slightly negative.

Pegas Nonwovens added that in the first quarter of 2015, the levels of inventories of finished products increased as against in the corresponding period of the previous year.

In the first quarter of 2015, EBITDA amounted to €12.6 million, also up 3.0 per cent year on year.

“This result is in line with the guidance range announced at the beginning of the year, when the Company indicated an increase in 2015 EBITDA in the range of €44.0 to €48.5 million,” it explained.

The EBITDA increase was achieved due to higher production, which as a result of implemented optimisation measures, was above the parameters planned for the first quarter of 2015.

Strong sales levels and the positive effect of the polymer price pass through mechanism were also contributing factors to this EBITDA growth.

However, results were negatively affected by the revaluation of the share option plan resulting from the growing price of its shares, which had strengthened by almost 10 per cent in the first quarter.

In the first quarter of this year, profit from operations (EBIT) amounted to €8.6 million, up 0.5 per cent compared with the first quarter of 2014.

In the first quarter of 2015, net profit amounted to €14.4 million representing a increase of 159.4 per cent over the same period of 2014, mainly due to unrealised foreign exchange gains.

"We were successful particularly in the area of production, where our volumes reached practically the same level as in the preceding record-breaking quarter,” CEO František Rezác said.

“At the same time, we managed to achieve an optimal level of inventories of finished products which is giving us more flexibility in production planning,” he too added.

“Likewise, the achieved results were supported by falling polymer prices that bottomed at a five year low in February, although, currently, polymer prices are back at levels that were normal last year,” he observed.

He further added, “For this reason, we expect that the positive contribution from the polymer price pass-through mechanism will be entirely eliminated in the second quarter.” (AR)

Fibre2fashion News Desk - India