Czech Pegas Nonwovens Q2 profit beats market expectations thanks to Egyptian plant [IntelliNews - Weekly Reports]
(IntelliNews - Weekly Reports Via Acquire Media NewsEdge) Czech non-woven textiles maker Pegas Nonwovens said its net profit in the second quarter of 2014 jumped by 33.3% on the year to EUR 5mn thanks to its new plant in Egypt that went into full commercial production earlier this year, the company said in a statement on its website. The profit beat market expectations of EUR 4.1mn according to a Reuters poll.
Revenue increased by 9.3% y/y to EUR 52.6mn in Q2, below the market forecast of EUR 55.6mn. Earnings before interest, tax, depreciation and amortisation (EBITDA) were higher by 8.6% y/y at EUR 9.9mn.
In the first half of the year Pegas net profit surged by 56.5% y/y to EUR 10.5mn helped by a 13.6% jump in revenues to EUR 111.4mn.
The growth in EBITDA was achieved namely due to the contribution of the new Egyptian production plant. The result was also supported by a weaker CZK/EUR exchange rate.
The result is in line with the guidance range announced at the beginning of the year, when the company indicated a year-on-year increase in EBITDA of 12% to 22%.
Pegas produces non-woven textile mainly for hygienic products, construction and medical industries. The company operates two plants in the Czech Republic and has invested some EUR 60mn in the plant in Egypt. The Egyptian plant, the company's first one abroad, has a capacity of 20,000 tonnes per year, which may be doubled in 2015 or 2016 if market conditions are favourable.
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