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Nonwovens/​Converting

Profits down at Pegas in H1

Leading manufacturer of spunmelt nonwovens for personal hygiene applications, Pegas S.A., has reported a decline in net profit of 31.1% for the first half of 2009. EBITDA in the first half of 2009 amounted to EUR 22.4 million, up by 8.2% year on year. The reported EBITDA in the first half of 2009 was mainly affected by its exceptional increase in the first quarter of 2009 due to low polymer prices and output pricing reflecting polymer prices at the higher level f

9th September 2009

Innovation in Textiles
 |  Prague

Medical/Hygiene

Leading manufacturer of spunmelt nonwovens for personal hygiene applications, Pegas S.A., has reported a decline in net profit of 31.1% for the first half of 2009.

EBITDA in the first half of 2009 amounted to EUR 22.4 million, up by 8.2% year on year. The reported EBITDA in the first half of 2009 was mainly affected by its exceptional increase in the first quarter of 2009 due to low polymer prices and output pricing reflecting polymer prices at the higher level from the last quarter of 2008. This effect was amplified by the sale of finished goods stock from the end of previous year.

Profit from operations (EBIT) represented EUR 14.6 million in the first half of 2009, an increase of 17.9% year on year. Profit from operations was in the first half 2009 driven by the same factors affecting EBITDA and in addition by lower depreciation costs in EUR as a result of depreciating CZK in the compared periods.

Consolidated revenues or revenues from sales of products totalled EUR 63.2 million in the first half of 2009, down by 16.1% year on year. The sales were primarily influenced by the rapid decline of polymer prices (PP and PE) at the end of last year, which subsequently led to lower sales prices of products. In contrast, revenues were positively impacted by the clearance of the stock of finished goods from the end of 2008.

Net profit in the first half of 2009 amounted to EUR 16.0 million, a decline of 31.1% year on year, primarily due to massive unrealized FX gains resulting from the revaluation of balance sheet items (including their impact on income tax) on the back of the appreciation of the CZK against EUR in the first half of 2008.

Given its financial and business results in the first half of 2009 and taking into account the developments in the nonwovens market in Europe, Pegas confirms its initial outlook for 2009.

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