Pegas Nonwovens revenue up 13.2% in 2012
March 14, 2013 - Czech Republic
Based on preliminary unaudited results, PEGAS NONWOVENS SA a leading European producer of nonwovens textiles recorded consolidated revenues of EUR 187.7 million in 2012, up by 13.2% yoy.
The year on year increase in revenues 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. In the fourth quarter of 2012, consolidated revenues reached EUR 47.6 million, up by 20.2% yoy.
In 2012, EBITDA amounted to EUR 38.1 million, up by 5.7% yoy. The EBITDA increase was achieved namely due to the launch of the new production line. In the last quarter of 2012, EBITDA decreased by 7.5% yoy and reached EUR 9.3 million. The year on year EBITDA decline is a consequence of the effect of the price pass-through mechanism, which was negative in the last quarter of last year, while in the same period in 2011 it positively affected the results.
Profit from operations (EBIT) was EUR 26.5 million in 2012, down by 1.2% compared with 2011. Profit from operations decreased in the fourth quarter of 2012 by 6.9% to EUR 6.7 million.
In 2012, net profit amounted to EUR 20.9 million, up by 49.8% yoy, primarily due to FX changes in the compared periods. In the last quarter of 2012, the Company recorded a net profit in the amount of EUR 3.2 million compared with a net loss of EUR 2.3 million achieved in the same period in 2011.
"In 2012, the Company achieved an EBITDA of EUR 38.1 million, which is an increase of 5.7% over the previous year and therefore in line with the full-year outlook that we announced at the beginning of the year. Our ambition was to achieve a result in the upper limits of the announced range, nonetheless, lower than planned production, particularly in the third quarter, and the unfavorable impact of the polymer price pass-through mechanism, meant that our expectations were achieved at the lower end of the scale. During the last quarter of the year we placed a great deal of emphasis on improving our key production indicators and I am glad to confirm that this effort has started to deliver results.
Nevertheless, 2012 was not only about financial results. Last year we made considerable progress in the execution of the Egyptian production plant project. This investment is exceptionally important for us. The project presents an opportunity for PEGAS to become a partner with greater global reach, a partner that is able to produce and deliver nonwoven textiles of high quality to its customers not only in Europe but also to other parts of the world, in this case in the fast growing and very promising markets of North Africa, the Middle East and Asia. This is our first investment outside of the Czech Republic and so this project presents a great challenge for the Company. In this respect we are very pleased to see that so far we have been successful in meeting the demanding time schedule.
We positively view the fact that our production capacity should be sold out this year. We greatly value the interest that customers have in our products, thanks to which we are able to maintain the position of one the leading nonwoven textile producers in the market. These sales volumes would not have been possible without the technical cooperation with customers on the development of new materials, which have new, unique or improved properties. At the end of last year we were successful in commercialising several such materials and in 2013, this fact should lead to an increase of the share of technologically advanced materials on total production.
The priority for 2013 is the already-mentioned commissioning of the new production line in Egypt. Obviously, we will put an emphasis on further production efficiency improvements and on the commercialisation of on-going technical projects. Based on the increased production capacity and thanks to the optimized product portfolio mix, we expect 2013 to deliver an improvement in the financial results and a 5 to 15% year-on-year growth in EBITDA", said Frantisek Rezac, CEO and Member of the Board of PEGAS NONWOVENS SA.
The year on year increase in revenues 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. In the fourth quarter of 2012, consolidated revenues reached EUR 47.6 million, up by 20.2% yoy.
In 2012, EBITDA amounted to EUR 38.1 million, up by 5.7% yoy. The EBITDA increase was achieved namely due to the launch of the new production line. In the last quarter of 2012, EBITDA decreased by 7.5% yoy and reached EUR 9.3 million. The year on year EBITDA decline is a consequence of the effect of the price pass-through mechanism, which was negative in the last quarter of last year, while in the same period in 2011 it positively affected the results.
Profit from operations (EBIT) was EUR 26.5 million in 2012, down by 1.2% compared with 2011. Profit from operations decreased in the fourth quarter of 2012 by 6.9% to EUR 6.7 million.
In 2012, net profit amounted to EUR 20.9 million, up by 49.8% yoy, primarily due to FX changes in the compared periods. In the last quarter of 2012, the Company recorded a net profit in the amount of EUR 3.2 million compared with a net loss of EUR 2.3 million achieved in the same period in 2011.
"In 2012, the Company achieved an EBITDA of EUR 38.1 million, which is an increase of 5.7% over the previous year and therefore in line with the full-year outlook that we announced at the beginning of the year. Our ambition was to achieve a result in the upper limits of the announced range, nonetheless, lower than planned production, particularly in the third quarter, and the unfavorable impact of the polymer price pass-through mechanism, meant that our expectations were achieved at the lower end of the scale. During the last quarter of the year we placed a great deal of emphasis on improving our key production indicators and I am glad to confirm that this effort has started to deliver results.
Nevertheless, 2012 was not only about financial results. Last year we made considerable progress in the execution of the Egyptian production plant project. This investment is exceptionally important for us. The project presents an opportunity for PEGAS to become a partner with greater global reach, a partner that is able to produce and deliver nonwoven textiles of high quality to its customers not only in Europe but also to other parts of the world, in this case in the fast growing and very promising markets of North Africa, the Middle East and Asia. This is our first investment outside of the Czech Republic and so this project presents a great challenge for the Company. In this respect we are very pleased to see that so far we have been successful in meeting the demanding time schedule.
We positively view the fact that our production capacity should be sold out this year. We greatly value the interest that customers have in our products, thanks to which we are able to maintain the position of one the leading nonwoven textile producers in the market. These sales volumes would not have been possible without the technical cooperation with customers on the development of new materials, which have new, unique or improved properties. At the end of last year we were successful in commercialising several such materials and in 2013, this fact should lead to an increase of the share of technologically advanced materials on total production.
The priority for 2013 is the already-mentioned commissioning of the new production line in Egypt. Obviously, we will put an emphasis on further production efficiency improvements and on the commercialisation of on-going technical projects. Based on the increased production capacity and thanks to the optimized product portfolio mix, we expect 2013 to deliver an improvement in the financial results and a 5 to 15% year-on-year growth in EBITDA", said Frantisek Rezac, CEO and Member of the Board of PEGAS NONWOVENS SA.