Ergis

Press Release

19 August 2013, 14:50

Ergis Group after the first half of 2013: Continued increase in sales and dynamic growth in operating results

 

PRESS RELEASE

 

Warsaw, 19 August 2013

 

ERGIS GROUP AFTER THE FIRST HALF OF 2013: 

CONTINUED INCREASE IN SALES AND DYNAMIC GROWTH IN OPERATING RESULTS 

 

 

The ERGIS Group, a leader in plastics processing in the Central and Eastern Europe, recorded an increase in sales in H1 2013, at a level of PLN 338.4 million, i.e. 8.4% more than a year before.EBITDA for that period amounted to nearly PLN 23 million (which represented an increase of 51.3% compared to the figure for H1 of the previous year). 

 

The Group’s net result after the first half of this year was adversely affected by foreign exchange losses and other financial expenses. As a result, the net profit for H1 2013 amounted to approx. PLN 1.5 million, while in the analogous period of the last year, the figure was PLN 2.5 million.  

 

The Ergis Group decided to relocate the second process line for the production of PVC films and PVC/PE laminates from Berlin to Wąbrzeźno.The investment plan provides for expenses in the amount of PLN 3 million on disassembly of the calender in Berlin and its reassembly in the new hall of MKF-Ergis in Wąbrzeźno, as well as on expenses connected with the adjustment of the hall for the assembly of the line and the purchase of accompanying equipment.Investment expenses will be financed from the investment loan.The launch of the calender is scheduled for the turn of 2013 and 2014.


FINANCIAL RESULTS – DETAILS

 

Financial results of the ERGIS Group after H1 2013 are presented in the table below:

 

PLN ‘000

 

H1

2013

 

H1 

2012

 

Change

Revenue on sales

338,359

312,046

+8.4%

Operating profit

12,394

5,003

+147.7%

EBITDA

22,972

15,182

51.3%

Unrealised foreign exchange differences

-3,201

3,650

n/a

Net profit

1,506

2,469

- 39%

 

The Group’s sales revenue for the first half of 2013 increased by 8.4% compared to the figure for the same period of last year, with average EUR exchange rate lower by approx. 0.25%.  

 

The Group’s EBITDA in the first half of 2013 increased to nearly PLN 23 million as compared to PLN 15.2 million achieved in the first half of 2012. Rigid packaging films and stretch films had the greatest share in the positive EBITDA dynamics, which increased for these products by PLN 4.7 million and PLN 6 million, respectively. The decrease in EBITDA was recorded in the “soft films” product group.  

 

The Group recorded high sales dynamics in industrial packaging (by 31% in terms of value, and by 24% in terms of quantity), which is due to launching a new production line for the new nanoERGIS multilayer stretch film in 2012. The sales of printed packaging as well as rigid packaging films have been increasing too, though at a slightly slower rate: by 7.42% to more than PLN 32.7 million and by 7.67% to PLN 105.7 million, respectively.

 

The Group recorded a fall in the sales of soft PVC films, which is attributable to lower revenue, primarily in export sales of decorative films by more than PLN 2 million. Revenue on sales, both domestic and foreign, of other product ranges of the group, was similar to the level achieved in the first half of 2012.  

 

The Group’s gross and net result in H1 2013 was adversely affected by foreign exchange losses and other financial expenses. Due to a higher EUR exchange rate as at the balance-sheet date, the foreign exchange losses in H1 2013 were PLN 3.2 million, while in H1 2012 foreign exchange gains of more than PLN 3.6 million were recorded.  

 

 

“It was a great first half-year for us in terms of sales and operating results. We recorded increase in sales by 8.4% to almost PLN 338.4 million wile EBITDA increased by 51.3%.It was attributable to such factors as a high sales dynamics in industrial packaging, which is a result of launching a new production line for the new nanoERGIS multilayer stretch film in 2012.Systematically, though at a slightly slower rate, also sales of printed packaging and rigid packaging films have been increasing,” Tadeusz Nowicki, the President of the Management Board of ERGIS-EUROFILMS said.

 

“Given positive results of the relocation of a part of the rigid film production from Berlin to Wąbrzeźno, we have decided to relocate the second process line for the production of PVC films and PVC/PE laminates as well. According to our plans, this line will be launched in Wąbrzeźno at the turn of 2013 and 2014,” added Tadeusz Nowicki.  

 

 

For more information, contact: 

 

Małgorzata Kot, ERGIS - EUROFILMS S.A.  

tel. 604 159 103, 604 159 159

e-mail: kot@ergis.eu  

 

Magda Kołodziejczyk, M+G

tel. (22) 416 01 02, 501 16 88 07

e-mail: magda.kolodziejczyk@mplusg.com.pl  

 

 

ADDITIONAL INFORMATION 

 

ERGIS Group is Poland’s largest manufacturer of PE stretch film (stretch film used for e.g. wrapping loads on pallets), as well as Central and Eastern Europe's leading manufacturer of PVC products:soft films (insulation and special purpose), and compounds.An important segment in the Group’s operations, is the manufacturing of PVC, PVC/PE and PET rigid films, used for the manufacturing of pharmaceuticals, food and technical packaging, as well as for flexible food wraps.The Ergis Group is also an important manufacturer of PET tapes (used for fastening medium heavy and heavy products and loads), PVC thermoshrink films (used, e.g. for food packaging) as well as a distributor of BOPP film (used mainly for packaging manufacturing). 

 

Additional information is also available at www.ergis-eurofilms.euwww.ergis-eurofilms.eu

 

.