Home / Knowledge / News / Textiles / Penrice Soda cuts losses in FY'13
Penrice Soda cuts losses in FY'13
Aug '13
Penrice Soda Holdings Limited reported an underlying net loss after tax for the year ended 30 June 2013 of $21.4 million (FY2013: $6.7 million). Statutory net loss after tax was $50.1 million (FY2012: $63.6 million) and includes impairment and restructuring charges of $30.0 million.

Penrice Soda Financial Results

- Underlying net loss after tax $21.4 million (FY2012: $6.7 million)
- Statutory net loss after tax $50.1 million (FY2012: $63.6 million) (includes impairment and restructuring charges of $30.0 million)
- Statutory operating net cash outflow of $3.0 million (FY2012: $6.1 million)
- Net debt increased to $112.1 million from $96.5 million
- No dividend declare

The increase in underlying net loss was primarily in the soda ash business unit of the chemicals business and was due to the impact of lower prices, sales and production volumes, partly offset by an increased contribution from its sodium bicarbonate business unit. With the imminent closure of the soda ash plant at the end of the year and softening demand for soda ash, inventories were sold at reduced prices, further reducing profits.

Statutory operating cash flow for the year was improved with a net cash outflow of $3.0 million, compared to $6.1 million for the prior year. Operating cash flow increased, despite margin erosion, due to a sustained focus on cash generation, including working capital reduction of $8.6 million and an interest deferral of $6.3 million on the interest deferred, five year term debt facility.

Significant items included chemicals business restructuring costs in the second half of $8.8 million and first half impairment of the chemicals business of $21.2 million, all related to closure of soda ash plant and chemicals business restructure.

Penrice Managing Director and CEO, Guy Roberts, said that “The year was a very significant one in Penrice’s growth as a chemicals company. The closure of our Australian soda ash manufacturing and switch to an import/distribution joint venture in Pro Asia Pacific will put the chemicals business and the entire company on a more sustainable and profitable footing.

“The chemicals business earnings were well down with an underlying EBITDA loss of $2.6 million (FY2012: underlying EBITDA of $11.4 million) on a substantial loss in the soda ash business unit. That loss was the key driver of the company’s previously announced plans to restructure its operations and turnaround financial performance.”

“The export orientated sodium bicarbonate business ran well with record sales and was the substantial contributor to group earnings, leveraging strong market positions in Asia.”

“The South Australian quarry and mineral business delivered a decreased EBITDA of $1.4 million (FY2012: underlying EBITDA of $3.9 million) on 25% less sales volume than the previous financial year, with levels at 25 year lows in residential construction activity in the state. Cost savings and production efficiencies helped offset sales decline and the overall result, while disappointing, was creditable in the circumstances.”

As expected, net debt was up to $112.1 million from $96.5 million, including for capitalized interest on the interest deferred, five year term debt facility and the $8 million loan to the company from its JV partner which funded the business restructure in the second half.

Click here to read full results

Penrice Soda Holdings

Must ReadView All

Courtesy: House of Fraser

Textiles | On 27th Apr 2017

House of Fraser's online sales up 16.1%

British department store group House of Fraser's online sales have...

Textiles | On 27th Apr 2017

Rieter completes 20 years of launching Com4 yarn

Rieter, the world's leading supplier of systems for short-staple...

Textiles | On 27th Apr 2017

Walmart releases 10th Global Responsibility Report

Walmart has released its tenth annual Global Responsibility Report,...

Interviews View All

Awen Delaval

'Natural fibres are appreciated for traditional authenticity'

Yash Maniyar
Rekha Maniyar

Indian fashion market is growing at a staggering rate

Abhishek Samdaria

GST will certainly reduce a lot of paperwork in future

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


news category

Related Categories:
April 2017

April 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search