PFNonwovens consolidated revenues up 4.4% in Q1FY19

May 17, 2019 - Europe

In the first quarter of fiscal 2019, the consolidated revenues of PFNonwovens, a leading European producer of nonwoven textiles, reached CZK 1,607.2 million, up 4.4 per cent y-o-y. The developments in polymer prices had a slightly positive effect on the development of revenues. Likewise, sales volumes in tonnage terms grew on a y-o-y basis.

EBITDA amounted to CZK 347.5 million, up by 6.2 per cent. 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 CZK 1.30 to 1.45 billion.

"The EBITDA of CZK 347.5 million achieved in the first quarter met our expectations and is in line with our target for this year, which we have set in the range CZK 1.30 - 1.45 billion. Compared to previous quarters, production volumes were slightly weaker, which together with strong sales resulted in a reduction of inventories of finished products. Indebtedness expressed in terms of net debt to EBITDA reached 3.03 at the end of the first quarter," said Marian Rasik, CFO and member of the board of PFNonwovens.

In the first quarter of 2019, the share of revenues from sales of nonwoven textiles for the hygiene industry represented an 88.0 per cent share of total revenues. In the first quarter of 2019, revenues from sales of non-hygiene products (for construction, agricultural and medical applications) amounted to a 12 per cent share of total revenues.

"Our investment projects are proceeding according to plan. The construction of the production plant in South Africa is practically complete and final building approvals are underway. The launch of the production line is on schedule and we expect to be producing the first commercial deliveries at the beginning of the second half. The installation of the new semi-commercial production line at the Znojmo-Prímetice plant is also proceeding according to our expectations and so we plan on achieving commercial operation during the third quarter of 2019. We expect, that launching these new production capacities will further improve our operating results," said Rasik. (RR)