Pegas Nonwovens recorded consolidated revenues of €55.1 million ($61.4 million) in the first quarter 2016, down by 9% yoy.

The reason for the decline in revenues were primarily lower polymer prices in a year-on-year comparison. The prices have presently stabilized and are at long term lows. On the other hand, sales volumes in tonnage terms grew on a yearly basis. Despite this, the levels of inventories of finished products increased moderately in the first quarter of 2016, mainly because of very good production.

In the first quarter of 2016, EBITDA amounted to €11.6 million ($12.9 million), down by 8.1% yoy. 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 to 49 million ($48 to $54.6 million). The driver for this very positive result was namely production, which approached record levels. The polymer price pass-through mechanism was the main factor contributing to the year-on-year decline in EBITDA, due to the fact that in the first quarter of last year it had a very positive effect, while remaining insignificant in the first three months of this year. The impact of the revaluation of the share option plan in the first quarter results of 2016 was slightly negative.

In the first quarter of this year, profit from operations (EBIT) amounted to €7.5 million ($8.4 million), down by 12.6% compared with the first quarter of 2015.

In the first quarter of 2016, net profit amounted to €0.5 million ($0.55 million) representing a yoy decrease of 96.7%, primarily a consequence of unrealized foreign exchange gains/losses.

“Our Company’s financial results in the first quarter were in line with our expectations and I am pleased that we have been able to continue on from last year’s very good performance. Production met the strictly set planned parameters and approached record levels. We were also satisfied with our sales results. Polymer prices have stabilised after declining at the end of last year and so the impact of the polymer price pass-through mechanism on the first quarter results has not been substantial. We have entered the new year successfully and I believe that stable conditions will permit us to focus our efforts on completing the construction of our warehousing capacities and carrying out work on the investment into the new production line,” says František Řezáč, CEO and Member of the Board of Pegas Nonwovens.