Pegas records consolidated revenue of €55.8 mn in Q1 2017

However, in the first quarter of 2017, EBITDA amounted to €11.3 million, down by 3.0 per cent year-on-year basis. This result is in line with the guidance range announced at the beginning of the year, when the company indicated an increase in EBITDA in the range from €43.0 to 50.0 million. The slight year-on-year decline in EBITDA was primarily caused by lower production volumes resulting from regular maintenance breaks. Likewise, the polymer price pass-through mechanism had a slightly negative impact as a result of the rising price of polymers in the first quarter of this year compared to the stable polymer prices in the first quarter of last year. The impact of the revaluation of the share option plan in the first quarter results of 2017 was also slightly negative.

"The first quarter results are in line with our expectations and with the goals that we have set ourselves for this year. The achieved EBITDA of €11.3 million was supported by strong sales. The effect of external factors, i.e. polymer prices and the revaluation of warrants were not significant. Compared to preceding quarters, production declined slightly; however, this was mainly due to the regular maintenance breaks being moved to this year. From the production point of view, a more important fact is that, compared to last year, we have been successful in improving production parameters, which is having a positive financial impact. The fact that the business is running as normal and generating good results is enabling us to concentrate on our projects," said Frantisek Rezac, CEO and member of the board of Pegas Nonwovens SA.

"The launch of the new production line in the Czech Republic is proceeding according to plan and we should be shipping the first commercial products at the end of the second quarter. The South African project is also developing positively. We have reserved production technology for this facility and expect the final decision regarding the ordering of the line to be taken in July. In the second quarter, we also want to conclude the land purchase contract and to finalise negotiations with customers. The construction of the new production plant should then be commenced at the end of the year. I firmly believe that we will do well in the coming quarter and that I will be able to inform you about progress on our projects," added Rezac. (RR)

Fibre2Fashion News Desk – India