Key events of Q2 2006:
As announced during the public offering, the Company has launched the new manufacturing line of stretch film and commenced the sale of the new stretch film as well as started the operation of a new production hall.
Financial data of the Company are presented below:
Net sales revenue (PLN):
Operating profit (PLN):
In the second quarter, the Company successfully carried out the initial public offering, and sold all offered shares at the price of PLN 4 per share. As a result, the Company?s proceeds amounted to more than PLN 16 mn. The purpose of the issue was primarily the co-financing of Eurofilms? investment projects intended to significantly boost the Company?s production capacity: by 50% for the stretch film and 100% for the PVC thermoshrink film. The Company?s investments are intended for a dynamic increase of export sales and reinforcing its position on the Polish market. This strategy is to bring an increase in the Company?s sales revenue by 50% as from 2007 (as compared to 2005). Eurofilms expects that the targeted figure of the export sales will represent 40% of sales revenue (in 2005 exports represented 23% of sales revenue).
The results of Eurofilms in the second quarter confirm the plans and assumptions presented to the investors during the initial public offering. In this period the Company increased its revenue by 31% in comparison with the same period of the previous year. Net profit grew by 2.376%. At the same time, the results achieved in the first half-year represent 42% and 35% of this year?s forecast. In the second half of 2006, Eurofilms? financial results will demonstrate the first effects of the new investments, co-financed from the funds of the May share issue.
According to the announcements presented in the public offering, the launching of the operation of the third CAST line for the production of stretch film took place in the second quarter. Total capital expenditure for this purpose amounted to approximately PLN 26.8 mn (PLN 19.0 mn for fixed assets and PLN 7.8 mn for the increase in current assets). The increase of the Company?s production capacity will be reflected by further increase in revenue and gross profit in the subsequent quartersWe are satisfied with the results of the first half-year. In the third quarter we expect that the current positive tendencies will reinforce. We fulfil the promises made during the public offering and we comply with the financial forecasts included in the Issue Prospectus for this year,? says Grzegorz Kędzierski, the President of Eurofilms.
The financial forecasts of Eurofilms for 2006 assume sales revenue at a level of PLN 133.42 mn and net profit of PLN 5.53 mn. At the same time, according to the estimates, in 2007 the sales will increase up to PLN 153.3 mn and net profit will exceed PLN 8.1 mn.
In the second half of this year the Second PVC line project will be completed. The investment includes:
Total capital expenditure for this purpose have been planned at the amount of about PLN 2.96 mn (PLN 2.26 mn for fixed assets and PLN 0.7 mn for the increase in current assets). A new line is planned to be launched in November 2006.