Sales of Providência Nonwovens shows growth of 42.4% for Q2

26 Aug '08

3 min read

Companhia Providência Indústria e Comércio, leader in the manufacture and sales of nonwovens in Brazil, with a significant presence in Latin America, announced its results for the second quarter of 2008 (2Q08). The company reports that for comparison purposes, the numbers referring to 2Q07 do not include balances from its subsidiary, Isofilme.

Highlights of 2nd Quarter 2008:
- The Company's Net Revenue reached R$ 127.4 million this quarter, for growth of 26.3% over 2Q07;
- Sales Volume increased 31.3% over 2Q07, due to the acquisition of Isofilme, which added 2,300 metric tons in 2Q08 and to the entry into operation of the KAMI9 in April 2008, which reached full capacity of 1,250 metric tons per month in June 2008; - The Ebitda adjusted by the hedge operation totaled R$ 31.4 million, up 19.3% over 2Q07. Compared to 1Q08, the Ebitda increased 13.7%, with a margin of 24.6% against 23.9% in 1Q08;
- The Ebitda adjusted by the hedge operation of the Nonwovens Division reached R$ 28.4 million, with a margin of 27.4%, an increase of 19.5% over 2Q07;
- The Ebitda of the Pipes and Fittings Division reached R$ 2.9 million in the quarter, with a margin of 12.9%, for growth of 27.6% compared to the same period in 2007.
- The Company's Net Income was R$ 13.8 million in the quarter, an increase of 249.2% compared to 2Q07 and of 40.6% over 1Q08;
- Conclusion of the investments and improvements in the production process of Isofilme, enabling it to reach full production capacity of 10,000 metric tons per year of nonwovens;
- Progress in capacity expansion projects in the specialty area of disposable hygienic products.

Nonwoven Division:
Net income totaled R$ 103.7 million in 2Q08, up 34.4% in relation to 2Q07, due principally to the incorporation of the operations of Isofilme and the coming on stream of the KAMI9.
It should be noted that this result is still more impressive if we take into account that the appreciation of the real against the dollar during the period (17.4% over the last 12 months and 4.7% compared to 1Q08) negatively impacted growth in income derived from exports. As already mentioned, the Company carried out foreign exchange hedge operations to reduce the impact of this devaluation on the Division's final results.

Sales of Nonwovens, our principal product, in 2Q08 showed growth of 42.4% over the same period of 2007. Growth was 18.8% over 1Q08, due to the attainment of full capacity, in June 2008, at Isofilme, acquired in August 2007 and which has a production capacity of 10,000 metric tones per year, and at KAMI9, which began operations in April 2008 and reached full capacity of 15,000 metric tons per year in June 2008.

Companhia Providência Indústria e Comércio

More Textiles News - Brazil...