Pegas Nonwovens SA, a leading European producer of nonwovens textiles in personal hygiene products market, announced the official figures of the first half of 2012. The company recorded earnings before interest, taxes, depreciation, and amortization (EBITDA) of EUR 17.6 million in the first half of 2012. The group, whose consolidated revenues reached EUR 92.3 million, up by 11.7% yoy in the first half of 2012, gained a 15.4% increase in the second quarter of 2012 compared with the same period last year. By means of the new production line, total production amount of the company has increased to a great extent in the second half of 2011.
In the first half of 2012, profit from operations (EBIT) amounted to EUR 11.4 million, increasing by 3.4% over the same period in 2011. In the second quarter of 2012, profit from operations is announced to be EUR 5.0 million, increasing by 2.3%. While profit rate was affected positively by the overall growth of EBITDA, it was affected negatively by a higher level of depreciation and amortization. In the first half of 2012, net profit of the company reached EUR 9.1 million, decreasing by 15.5% compared with the EUR 10.8 million net profit of the previous year. Net profit of the company in the second quarter of 2012 reached EUR 0.4 million decreasing by 89.8% compared with EUR 4.4 millions net profit of the same period of 2011. Unrealized foreign exchange differences are stated to be effective in this decrease.
Egyptian Plant is Important for the Future of the Company
František Řezáč, CEO and member of the Board of Directors of Pegas Nonwovens SA, making statements on the financial results, pointed out that EBITDA increased by 15% in the second quarter of 2012. “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 unfavorable 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.” stated Řezáč.
František Řezáč, asserting Pegas was now entering a very important period, explained that in a few weeks time the production technology would be installed to the Egyptian plant whose construction works proceeded. Řezáč said: “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." He also added their growth targets for the year 2012 was between 5% and 12%.
Close – Up: Pegas Nonwovens
The company, established in 1990, offers its customers spunbond and meltblown (spunmelt) technologies, polypropylene and polypropylene / polyethylene-based disposable hygiene products. These products include baby wipes, adult diapers, sanitary towels. The company with 2 production plants in the Czech Republic, has products for agricultural and medical applications to a lesser extent. Pegas Nonwovens, a member of EDANA, has a yearly 90 thousand tons of nonwoven fabric production capacity.
Under the umbrella of the Luxembourg – based holding company, 4 companies operate: Pegas Nonwovens s.r.o, PEGAS-NT a.s., PEGAS-NW a.s. and PEGAS-NS a.s. Investments for PEGAS Nonwovens Egypt LLC, the group's company in Egypt, are in progress since June 2011.
