ERGIS-EUROFILMS, a leader in the plastics manufacturing industry of Central and Eastern Europe, after three quarters of 2007 noted revenue on sales of PLN 283 million, which is almost 26% more than in the parallel period of 2006. Its operating profit in this period was PLN 13.5 million, while its net profit amounted to PLN 8.4 million.
Key events of the third quarter:
At the end of the third quarter, the Company completed the transaction of acquiring 100% of shares in MKF-Folien GmbH, the leading company in the German market of PCV and PET rigid films, and 100% of shares in a manufacturer of PET/PE and PVC/PE rigid films laminates, Schimanski GmbH. Thus, ERGIS-EUROFILMS strengthened its leading position in the plastics manufacturing market of Central and Eastern Europe.
In the third quarter of 2007, the construction works on a production hall were completed and the line for PET tapes was launched. On the last day of July, the Company started manufacturing a new product range.
FINANCIAL RESULTS – DETAILS
Detailed financial results of the Eurofilms Group are presented in the following table:
Revenue on sales
Gross profit on sales
Net profit excluding extraordinary events
In the third quarter of 2007, in comparison to the third quarter of 2006, the ERGIS-EUROFILMS Group noted the increase in revenue on sales by 13%. The increase in the direct costs by almost 5% (mainly costs of basic raw materials) resulted in attaining in the third quarter of the present year the revenue on sales lower by 2.4 million in comparison with the third quarter 2006. General costs remained at the level of the costs of the third quarter of 2006.
After eliminating non-recurring events from the results of the Group for 3 quarters of 2007 (revenue on the disposal of a real estate in the amount of PLN 919,000) and for 3 quarters of 2006 (profit on sales of financial assets of PLN 6,947,000), accumulated gross profit in 2007 is higher by 2% than the gross profit achieved for 3 quarters of 2006.
PLANS OF ERGIS-EUROFILMS
Within the next few months, ERGIS-EUROFILMS is going to focus on maximising the synergy effects resulting from the acquisition of MKF-Folien and Schimanski.
The nearest plans of the Group concern first of all the development of MKF-Folien and Schimanski sales in the Polish market, as well as the growth of sales of ERGIS-EUROFILMS products (including PET tapes and stretch film), both through the existing distribution network of ERGIS-EUROFILMS and sale forces of MKF and Schimanski. ERGIS-EUROFILMS is also going to undertake, in the near future, activities aiming at the application of technological synergy effects in order to increase profitability of all companies in the Group.
“The third quarter was marked by negotiations and finalization of the agreement for acquiring MKF-Folien and Schimanski, the transaction which significantly improved our position as the industry leader for Central and Eastern Europe and which will enable us to rapidly increase our revenue. We should not forget also about the organic growth - in the third quarter, we completed construction works related to a production hall and launched the production line for PET tapes. Our plant in Oława already started the production of this range at the end of July,” says Tadeusz Nowicki, the CEO of ERGIS-EUROFILMS S.A.
ERGIS-EUROFILMS was created through this year’s merger of the listed Eurofilms and its trade investor, ERGIS. The merged Company is Poland’s largest and one of Central and Eastern Europe’s leading manufacturers of PVC products: films, compounds, wallpapers, wall panelling, and windowsills. The company's offer includes films laminated with a layer of another film, paper, woven and non-woven fabric, etc. printed films, insulation films, packaging films (including films for packaging pharmaceuticals), bus floor covering, compounds for cable manufacturing, interior and exterior wall panels, expansion joint tapes, artificial leather, coated fabrics, tablecloths, and vinyl and paper wallpapers. Additionally, the Company is Poland's second largest manufacturer of stretch films (tensile films, used e.g. for wrapping loads on pallets, PVC thermoshrink films (used, e.g. for food packaging) and PET tapes (used for fastening medium heavy and heavy products and loads) as well as a distributor of polypropylene BOPP film (used mainly for packaging manufacturing). Additional information is also available at www.ergis-eurofilms.eu.
MKF-Folien GmbH is one of leading German manufacturers of PET and PVC rigid films, used mainly in food industry and in technical sectors. The company’s production capacity is 20,000 tons of the PET film, and 12,500 tons of the PVC film. Its revenue in 2006 amounted to EUR 39.8 million, while EBITDA was EUR 3.6 million. After the first half of 2007, these results were EUR 22.5 million and EUR 2.0 million, respectively.
Schimanski GmbH is a manufacturer of PET/PE and PVC/PE rigid films laminates, used mainly in food industry (e.g. for packaging meat or cheese, with the annual production capacity of about 16,000 tons. The revenue of the company in 2006 exceeded EUR 28.3 million, while EBITDA amounted to EUR 2.8 million. After the first half of 2007, these results were EUR 13.5 million and EUR 1.4 million, respectively.