Avintiv inks record EBITDA from transformation programs
August 13, 2015 - United States Of America
Global transformation initiatives drove Avintiv to post a record EBITDA and surged 34.1 per cent year over the three months to June 30, 2015.
“Adjusted EBITDA soared 34.1 per cent from a year ago period or $18.9 million, to $74.2 million in the second quarter of 2015,” an Avintiv press release informed.
Excluding acquisitions, EBITDA increased 12.1 per cent driven by growth in core markets, manufacturing efficiencies, global cost optimisation and focus on operational excellence.
Net sales grew slower at $17.8 million, or 4.0 per cent over the prior year second quarter to $457.7 million in the quarter under review, of which Providência contributed $47.6 million in incremental sales growth.
“Excluding acquisitions, incremental volume increased net sales by $2.4 million as improvements were realised across all regions except Europe,” the company added.
Continued strong demand in the hygiene, wipes and technical specialties markets enabled North America to mitigate weather impacts in the construction markets and the closure of a manufacturing facility.
Improvements in the hygiene markets and a recent manufacturing line upgrade helped provide $2.5 million of incremental sales from volume growth in South America.
“Currency translation negatively impacted the European segment by $21.0 million in the second quarter of 2015,” it informed.
Gross profit too drove up $18.9 million, or 21.9 per cent over the previous year’s second quarter to $105.5 million in the second quarter of 2015.
“The primary driver of the increase related to the contributions from Providência and improved spreads as a result of favourable raw material trends,” Avintiv observed.
According to Avintiv, another driver of the growth was a reduction in the overhead component of cost of goods sold, which was driven by the benefits of cost reduction initiatives implemented during the prior year.
This also includes benefits from acquisition integration initiatives, as well as manufacturing efficiencies.
As a result, gross profit as a percentage of net sales for the second quarter of 2015 climbed 23.1 per cent from 19.7 per cent compared with the same quarter of last year.
CEO Joel Hackney said, “We continued to witness strong progress with our strategic growth initiatives associated with closing the Dounor acquisition during the second quarter.”
“We are clearly realising strong synergies across the segments as we are executing our global growth strategy,” he too added. (AR)
“Adjusted EBITDA soared 34.1 per cent from a year ago period or $18.9 million, to $74.2 million in the second quarter of 2015,” an Avintiv press release informed.
Excluding acquisitions, EBITDA increased 12.1 per cent driven by growth in core markets, manufacturing efficiencies, global cost optimisation and focus on operational excellence.
Net sales grew slower at $17.8 million, or 4.0 per cent over the prior year second quarter to $457.7 million in the quarter under review, of which Providência contributed $47.6 million in incremental sales growth.
“Excluding acquisitions, incremental volume increased net sales by $2.4 million as improvements were realised across all regions except Europe,” the company added.
Continued strong demand in the hygiene, wipes and technical specialties markets enabled North America to mitigate weather impacts in the construction markets and the closure of a manufacturing facility.
Improvements in the hygiene markets and a recent manufacturing line upgrade helped provide $2.5 million of incremental sales from volume growth in South America.
“Currency translation negatively impacted the European segment by $21.0 million in the second quarter of 2015,” it informed.
Gross profit too drove up $18.9 million, or 21.9 per cent over the previous year’s second quarter to $105.5 million in the second quarter of 2015.
“The primary driver of the increase related to the contributions from Providência and improved spreads as a result of favourable raw material trends,” Avintiv observed.
According to Avintiv, another driver of the growth was a reduction in the overhead component of cost of goods sold, which was driven by the benefits of cost reduction initiatives implemented during the prior year.
This also includes benefits from acquisition integration initiatives, as well as manufacturing efficiencies.
As a result, gross profit as a percentage of net sales for the second quarter of 2015 climbed 23.1 per cent from 19.7 per cent compared with the same quarter of last year.
CEO Joel Hackney said, “We continued to witness strong progress with our strategic growth initiatives associated with closing the Dounor acquisition during the second quarter.”
“We are clearly realising strong synergies across the segments as we are executing our global growth strategy,” he too added. (AR)