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Rieter more than doubles H1 net profit
23
Jul '15
Net profit in the first six months of 2015 at Switzerland based spinning technologies manufacturer Rieter Management AG more than doubled over the same period of 2014.

In a press release, Rieter said its net profit in the six months to June 30, 2015 soared to CHF 29.1 million or 5.3 per cent of sales compared to CHF 14.3 million or 2.7 per cent of sales in the first half of 2014.

Sales however rose much slower at 6 per cent to CHF 553.9 million in the first half of 2015 as against CHF 522.1 million in the corresponding period of the previous year.

According to the spinning technologies producer, it posted growth in sales on the back of its large order backlog at the start of the year.

EBITDA for the reporting period climbed 36 per cent year on year to CHF 66.0 million or 11.9 per cent of sales as against 9.3 per cent of sales in the first half of 2014.

EBIT surged higher by 60 per cent from the same period in the prior year to CHF 46.1 million in the period under review, while EBIT margin increased from 5.5 per cent to 8.3 per cent of sales.

“This reflects the positive development in the three business groups and effects of cost-reduction measures which were implemented as a response to scrapping of minimum exchange rate of the euro,” it noted.

“The gain on the sale of a property amounting to CHF 5.0 million also contributed to the satisfying result,” Rieter added.

Rieter's financial result in the first half of the current year improved to a loss of CHF 4.7 million compared to a loss of CHF 7.3 million in the same period of the earlier year.

In the six months to June 30, 2015, the tax ratio was down to 29.7 per cent as against 33.5 per cent in six months to June 30, 2014.

On account of the favourable trend of these two parameters along with the improvement in EBIT, Rieter was able to more than double its net profit in the first half of 2015.

Rieter's capital expenditure in the period under review totaled CHF 7.3 million, down a steep 40 per cent from the prior year first half, while R&D spend rose marginally to CHF 22.9 million.

Net working capital grew by CHF 37.5 million CHF in the first half year of 2015, although inventories were reduced.

“This development is due to an increase in trade receivables and a reduction in trade payables as well as advance payments from customers,” it explained.

Rieter paid a dividend of CHF 20.6 million or CHF 4.50 per share out of the reserve from capital contributions and repaid a bond issue totaling to CHF 151.9 million CHF in April 2015.

After which, cash and cash equivalents at Rieter amounted to CHF 257.6 million and net liquidity to CHF 139.0 million as of June 30, 2015. (AR)

Fibre2Fashion News Desk - India

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