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Pegas Nonwovens recorded EBITDA of €11.3 million in 3Q

November 28, 2012

Pegas Nonwovens, a leading European producer of nonwovens textiles, recorded an EBITDA of €28.9 million in the first nine months of 2012.

In the first nine months of 2012 consolidated revenues reached €140.2 million, up by
11% compared to the same period the year before. The total consolidated revenues in the third quarter of 2012 were €47.9 million, a 9.7% increase compared with the same period last year.

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. Operating profitability before depreciation and amortization, interest and taxes measured
by EBITDA was €28.9 million, up by 10.8%. The EBITDA increase was achieved due to the contribution of the new production line. Conversely, the year on year comparison was negatively impacted by the increased number of days required for regular maintenance breaks, lower than planned production and higher electricity prices. EBITDA amounted to €11.3 million in the third quarter of 2012, up by 4.8% due to the already mentioned production output from the new production line. On the other hand, lower than planned production output lowered the year on year growth of this indicator.

In the first nine months of 2012 profit from operations (EBIT) amounted to €19.8 million, up by 0.9% over the same period in 2011. Profit from operations in the third quarter of 2012 decreased by 2.1% to €8.4 million.

Net profit in the first nine months of 2012 reached €17.7 million, up by 8.8%, primarily due to higher unrealized foreign exchange gains. In the third quarter of 2012, the company recorded a net profit of €8.6 million, up by 56.8% compared with the same period in 2011. This increase was caused by unrealized foreign exchange differences in the compared periods.

"In the third quarter of this year, the company achieved an EBITDA of €11.3 million. Naturally, this solid result was supported by the capacity from the production line that was put into operation last year and by the decline in polymer prices, which positively compensated the impact of the second quarter," says Frantisek Rezac, CEO and member of the board of directors of Pegas Nonwovens. "Despite the continuing volatility of input material prices and the subsequent negative effect of their recent increase on the results in the fourth quarter, I am happy to be able
to confirm the full year EBITDA guidance, albeit at the lower end of the announced range. At the present time, we are focusing our efforts on finalizing the budget for 2013 and it is pleasing to note that based on the current state of negotiations with our business partners, we believe that the company’s production capacity in 2013 should be sold out. Total production capacity should be supported by the start-up of the new Egyptian production line. This project represents a key priority for us, and with a certain level of satisfaction, I can confirm that we are successful in meeting the very demanding installation schedule and we expect the first commercial production to come off the line in the third quarter of 2013.

"Securing sales for next year as well as the successful launch of the new Egyptian production line are tasks that still await us," says Rezec. "If I am to mention significant events that occurred in the third quarter of this year or recently, it would most certainly be the "Excellence Award" that we received from Procter & Gamble for the fifth year in a row and of course the dividend payout in the amount of €1.05 per share."