PEGAS NONWOVENS increased EBITDA
November 24, 2011 - Czech Republic
Based on unaudited results PEGAS NONWOVENS SA - a leading European producer of nonwovens textiles, recorded consolidated revenues of EUR 43.7 million in the third quarter of 2011, up by 7.9% yoy.
A key role in the development of revenues was played by the continued growth in polymer price indices. Polymer prices grew from the beginning of the year 2010 until April 2011 and then stabilised. Since June of this year polymer prices have declined significantly.
In the third quarter of 2011 EBITDA grew by 17% yoy and reached EUR 10.8 million, which is the highest quarterly EBITDA reported in two and a half years.
"The significant growth in polymer prices that negatively affected our profitability in the first half of the year reversed in June and prices started to decline. This development had a positive effect on our financial results in the third quarter", commented results František Rezác, member of the Board of Directors of PEGAS NONWOVENS SA and CEO of PEGAS NONWOVENS s.r.o.
In the third quarter of 2011 Profit from operations (EBIT) amounted to EUR 8.6 million, up by 69% over the same period in 2010. The annual increase of profit from operations was on the back of higher EBITDA and changes to the depreciation of production technology.
In the given period Net profit reached EUR 5.5 million, down by 33.3% yoy due to the effect of FX changes in the compared periods.
“We registered some softening of the nonwoven textiles market in the fourth quarter, however there is no indication currently that this will be anything other than a short-term effect. We confirm our 2011 full year EBITDA guidance, however at the lower end of the previously announced range, and remain positive about the outlook for 2012.
With respect to the project for the construction of the Egyptian plant we were successful in concluding several key contracts, the project is proceeding according to plan and we expect to launch the line in the second half of 2013.
Recently we were very pleased to have once again received the prestigious "Business Partner of the Year" award from Procter & Gamble. We value this award a great deal because we are very well aware that the satisfaction of our customers with our products and services is the fundamental prerequisite for the Company's long term success.
Likewise, thanks to our good financial results we have again been able to pay out a dividend to our shareholders at the end of October in the amount of EUR 1 per share, which represents a dividend yield of 5.7%", concluded CEO of PEGAS František Rezác.
PEGAS NONWOVENS SA, is a holding company based in Luxembourg with operating companies based in Znojmo and Bucovice, Czech Republic. PEGAS NONWOVENS is a manufacturer of polypropylene / polyethylene nonwoven textiles for the hygiene, industrial, construction, agricultural, medical and other specialized sectors. These textiles are primarily used for the manufacture of baby diapers, feminine hygiene and adult incontinence products. The Company is active in developing new products demanded by the market and thereby maintains its position of technology leader in the European nonwovens market. PEGAS NONWOVENS currently has more than 400 employees.
A key role in the development of revenues was played by the continued growth in polymer price indices. Polymer prices grew from the beginning of the year 2010 until April 2011 and then stabilised. Since June of this year polymer prices have declined significantly.
In the third quarter of 2011 EBITDA grew by 17% yoy and reached EUR 10.8 million, which is the highest quarterly EBITDA reported in two and a half years.
"The significant growth in polymer prices that negatively affected our profitability in the first half of the year reversed in June and prices started to decline. This development had a positive effect on our financial results in the third quarter", commented results František Rezác, member of the Board of Directors of PEGAS NONWOVENS SA and CEO of PEGAS NONWOVENS s.r.o.
In the third quarter of 2011 Profit from operations (EBIT) amounted to EUR 8.6 million, up by 69% over the same period in 2010. The annual increase of profit from operations was on the back of higher EBITDA and changes to the depreciation of production technology.
In the given period Net profit reached EUR 5.5 million, down by 33.3% yoy due to the effect of FX changes in the compared periods.
“We registered some softening of the nonwoven textiles market in the fourth quarter, however there is no indication currently that this will be anything other than a short-term effect. We confirm our 2011 full year EBITDA guidance, however at the lower end of the previously announced range, and remain positive about the outlook for 2012.
With respect to the project for the construction of the Egyptian plant we were successful in concluding several key contracts, the project is proceeding according to plan and we expect to launch the line in the second half of 2013.
Recently we were very pleased to have once again received the prestigious "Business Partner of the Year" award from Procter & Gamble. We value this award a great deal because we are very well aware that the satisfaction of our customers with our products and services is the fundamental prerequisite for the Company's long term success.
Likewise, thanks to our good financial results we have again been able to pay out a dividend to our shareholders at the end of October in the amount of EUR 1 per share, which represents a dividend yield of 5.7%", concluded CEO of PEGAS František Rezác.
PEGAS NONWOVENS SA, is a holding company based in Luxembourg with operating companies based in Znojmo and Bucovice, Czech Republic. PEGAS NONWOVENS is a manufacturer of polypropylene / polyethylene nonwoven textiles for the hygiene, industrial, construction, agricultural, medical and other specialized sectors. These textiles are primarily used for the manufacture of baby diapers, feminine hygiene and adult incontinence products. The Company is active in developing new products demanded by the market and thereby maintains its position of technology leader in the European nonwovens market. PEGAS NONWOVENS currently has more than 400 employees.