EBITDA up by 15% at Pegas Nonwovens
September 01, 2012 - Czech Republic
Based on unaudited results Pegas Nonwovens SA recorded EBITDA of EUR 17.6 million in the first half of 2012 and confirms its full year EBITDA guidance.
In the first half of 2012 consolidated revenues reached EUR 92.3 million, up by 11.7% yoy. The total consolidated revenues in the second quarter of 2012 were EUR 48.0 million, a 15.4% increase compared with the same period last year. This increase was the result of increased volumes of sold production thanks to the new production line, which was put into operation in the second half of 2011.
Operating profitability before depreciation and amortization, interest and taxes measured by EBITDA was EUR 17.6 million, up by 15.0% yoy. The year on year EBITDA increase was achieved namely due to the contribution of the new production line. However, the year on year comparison was negatively affected by a higher number of planned maintenance breaks and changes in inventories of finished goods. EBITDA amounted to EUR 8.1 million in the second quarter of 2012, up by 15.2% yoy thanks to the already mentioned production output from the new production line.
In the first half of 2012 profit from operations (EBIT) amounted to EUR 11.4 million, up by 3.4% over the same period in 2011. In the second quarter of 2012 profit from operations increased by 2.3% to EUR 5.0 million. The increased profit from operations was positively affected by the growth of EBITDA and negatively affected by a higher level of depreciation and amortization.
In the first half of 2012 net profit reached EUR 9.1 million, down by 15.5% yoy, primarily due to lower unrealized foreign exchange gains. In the second quarter of 2012, the Company recorded a net profit of EUR 0.4 million, down by 89.8% compared with the same period in 2011. This decrease was caused by unrealized foreign exchange differences in the compared periods.
"In the second quarter of this year we achieved a year-on-year EBITDA increase of over 15%. The production from the new production line that was put into operation in the second half of last year significantly contributed to this growth. We also positively register the reversal of the unfavourable polymer price development that occurred at the start of the year. The decline in the price of our main input raw materials recorded in recent months will provide considerable support to the financial results in the third quarter. The solid operating results achieved in the first half of the year and the positive outlook for the subsequent months provide us with the opportunity to focus our efforts and resources on the achievement of the Company's strategic objectives.
Pegas is now entering a very important period. Construction works on the Egyptian plant are proceeding according to our time schedule and in a few weeks time we will start installing the production technology. We are well aware that the successful execution of the Egyptian production line project will play an important role in the future development of the Company and for this reason, at the current time, this project is of the utmost priority for us", said František Rezác, CEO and member of the Board of Directors of Pegas Nonwovens SA.
In the first half of 2012 consolidated revenues reached EUR 92.3 million, up by 11.7% yoy. The total consolidated revenues in the second quarter of 2012 were EUR 48.0 million, a 15.4% increase compared with the same period last year. This increase was the result of increased volumes of sold production thanks to the new production line, which was put into operation in the second half of 2011.
Operating profitability before depreciation and amortization, interest and taxes measured by EBITDA was EUR 17.6 million, up by 15.0% yoy. The year on year EBITDA increase was achieved namely due to the contribution of the new production line. However, the year on year comparison was negatively affected by a higher number of planned maintenance breaks and changes in inventories of finished goods. EBITDA amounted to EUR 8.1 million in the second quarter of 2012, up by 15.2% yoy thanks to the already mentioned production output from the new production line.
In the first half of 2012 profit from operations (EBIT) amounted to EUR 11.4 million, up by 3.4% over the same period in 2011. In the second quarter of 2012 profit from operations increased by 2.3% to EUR 5.0 million. The increased profit from operations was positively affected by the growth of EBITDA and negatively affected by a higher level of depreciation and amortization.
In the first half of 2012 net profit reached EUR 9.1 million, down by 15.5% yoy, primarily due to lower unrealized foreign exchange gains. In the second quarter of 2012, the Company recorded a net profit of EUR 0.4 million, down by 89.8% compared with the same period in 2011. This decrease was caused by unrealized foreign exchange differences in the compared periods.
"In the second quarter of this year we achieved a year-on-year EBITDA increase of over 15%. The production from the new production line that was put into operation in the second half of last year significantly contributed to this growth. We also positively register the reversal of the unfavourable polymer price development that occurred at the start of the year. The decline in the price of our main input raw materials recorded in recent months will provide considerable support to the financial results in the third quarter. The solid operating results achieved in the first half of the year and the positive outlook for the subsequent months provide us with the opportunity to focus our efforts and resources on the achievement of the Company's strategic objectives.
Pegas is now entering a very important period. Construction works on the Egyptian plant are proceeding according to our time schedule and in a few weeks time we will start installing the production technology. We are well aware that the successful execution of the Egyptian production line project will play an important role in the future development of the Company and for this reason, at the current time, this project is of the utmost priority for us", said František Rezác, CEO and member of the Board of Directors of Pegas Nonwovens SA.