Pegas Nonwovens expects marginal EBITDA rise in 2013
March 21, 2014 (Czech Republic)
News from TT net
Based on preliminary unaudited results, PEGAS NONWOVENS SA, a leading European producer of nonwovens textiles, recorded consolidated revenues of EUR 199.2 million in 2013, up by 6.1% yoy.
In the fourth quarter of 2013, consolidated revenues reached EUR 53.2 million, up by 11.8% yoy. The year-on-year growth in revenues was the result increased sales levels related to the start of production on the new Egyptian production line.
Operating profitability before depreciation and amortization, interest and taxes measured by EBITDA was EUR 38.6 million, up by 1.1% yoy. The year-on-year comparison was positively affected by the raw material price pass-through mechanism and a weaker CZK/EUR exchange rate. On the other hand, the comparison was negatively impacted by lower than planned production results and the revaluation of the share option plan to fair value.
After excluding costs related to the revaluation of the share option plan to fair value in the amount of EUR 0.8 million, the 2013 result is slightly higher than the updated guidance announced in November last year, where the Company indicated an EBITDA level between EUR 37 and 39 million. In the fourth quarter of 2013, EBITDA reached EUR 10.6 million, up by 14.3% yoy.
The increase in the indicator resulted from the positive effect of the raw material price pass-through mechanism, the weaker CZK/EUR exchange rate and the gradual ramp-up of production in Egypt. However, lower than planned production results and the effect of the revaluation of the share option plan to fair value weighed down the growth of this indicator.
In 2013, profit from operations (EBIT) amounted to EUR 25.5 million, down by 4.0% compared with 2012, influenced by an increase in depreciation. In the fourth quarter of 2013, profit from operations (EBIT) increased by 1.3% to EUR 6.8 million.
Net profit reached EUR 1.4 million in 2013, down by 93.3% yoy, primarily due to the negative effect of FX changes in the compared periods. In the fourth quarter of 2013, the Company recorded a net loss in the amount of EUR 7.6 million compared with a profit of EUR 3.2 million achieved in the same period in 2012. This was primarily the result of the weakened CZK/EUR foreign exchange rate and the subsequent revaluation of Euro denominated balance sheet items.