Operating profit totaled $9.5 million while net profit totaled $3.8 million, a 320% increase over the corresponding quarter in 2005.
For the year, Avgol posted $229 million in revenue for 2006, up 40% on 2005. Gross profit for 2006 rose to $55 million, representing nearly 24% of turnover in 2006 while management expenses were slightly higher. Operating profit rose 105% and net profit doubled to $15 million, which increased the company’s cash to just under $25 million.
According to the company, despite adding a production line in the U.S., Avgol’s own manufacturing activity failed to cope with rising demand and its sales also include products manufactured by other companies. Avgol attributes75% of its revenue to two main customers, Tyco International and Procter & Gamble. Based on its standing orders for these two companies, Avgol’s orders backlog for 2007-2008 stands at $340 million (the annual average is similar to revenue from the two companies in 2006).